UZ-ARCTECH, WELDING ELECTRODES AND WIRES JV

Location:

Uzbekistan

Project number:

15353

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

20 Jul 2004

Status:

Complete

PSD disclosed:

04 Jun 2004

Project Description

The proposed project concerns the establishment of a welding electrodes, wires and welding machines manufacturing plant. Welding is a fundamental industrial process and the Project will provide Uzbekistan and the wider region with modern facilities to manufacture strategically important goods to meet export and local demand.
The Sponsor’s strategy is to combine the low-cost resources of  Uzbekistan with modern industrial technology and effective managerial and marketing skills to manufacture high-value added goods for export and local markets.
 

Transition Impact

The Project has good transition impact potential:
  • Private sector development is still at a very early stage in Uzbekistan and the proposed project will be the first fully privately owned general industry project in the country.
  • Expanding the market - the market for welding products in Uzbekistan and the region is growing rapidly. The project will provide Uzbekistan with modern manufacturing facilities to meet the demand in Uzbekistan and the wider region.
  • Demonstration effect - The Project will create a new and easily replicable line of activity in the Uzbek market. The willingness of a competent sponsor to invest in the country will have a high demonstration effect sending a positive signal to other foreign investors.
  • The project will significantly increase the efficiency in this industrial sector in Uzbekistan as a result of lower incidence of defective electrodes, which often lead to disruptions in industrial operations.

The Client

Uz-Arctech - a private company established and wholly owned by Arctech Welding Electrodes and Wires Industry, which is a private medium-sized Turkish company with significant expertise and good track record as a manufacturer and marketer of welding products in western markets as well as the FSU.

EBRD Finance

USD 9.5 million loan

Project Cost

USD 26.3 million

Environmental Impact

The Project was screened B/1, requiring an environmental analysis and audit. A site visit by the Bank’s Environmental Specialist confirmed that the site and facilities used by the JV, will not present environmental concerns. The Sponsor will be refurbishing the facility to international standards.
The Project’s operations are designed to meet the EU environmental, health and safety standards.  Environmental management practices employed by Arctech will establish a good example for continuous improvement of environmental performance particularly in relation to energy efficiency, recycling, and worker health and safety for the whole of Uzbekistan. An environmental action plan outlining the above targets is part of the legal agreements for this Project.
The Project will improve the safety of industrial operations and stability of metal structures in Uzbekistan by reducing the incidence of defective electrodes.

Technical Cooperation

None.

Company Contact

EBRD - Gulsema Cerezci
Tel:+44 207 338 6054
 
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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