Free Economic Zone “Karakul” and “Enter Steel Karakul» have signed a new investment agreement

The State Unitary Enterprise Directorate of the Free Economic Zone (FEZ) “Karakul” has signed a new investment agreement with the “Enter Steel Karakul” LLC. According to the Agreement, a new plant with a total cost of 58 million US dollars and an area of 52,500 square meters will produce metal pipes and industrial vessels under the ENPIPE trademark.

At the first stage, the production capacity of the plant will be 230 thousand tons of metal pipes, as well as 300 units of industrial vessels per year. The plant is equipped with three production lines for manufacturing pipes of various diameters: the first line is intended for producing pipes from 89 mm to 219 mm in diameter, the second – from 219 mm to 530 mm, and the third – from 530 mm to 1420 mm.

The plant will supply its products to companies in oil and gas, chemical, construction, mining, and other industries. In addition, ENPIPE products will be used for the construction of the MTO Gas Chemical Complex and other facilities of the free economic zone “Karakul.”

The new project will allow for more effective implementation of import substitution policies and production of high added value products in Uzbekistan. Local pipe production will not only reduce the dependence of key industrial sectors on imports but will also help to improve the economic efficiency of ongoing and promising projects, as well as localize the production of high-tech products in the Republic.

Special attention is given to creating new jobs for local residents – it is planned that this project will create 400 new jobs which will positively impact on socio-economic development of the region.

Bakhodur Khafizov, Director of FEZ “Karakul,” emphasized how crucial it was to include this pipe factory project among other FEZ’s residents. He noted that this step opens new prospects for developing country’s economy by promoting domestic production growth, introducing modern infrastructure in this region, developing supply chains, creating new jobs, attracting investments directly into FEZ itself as well as in region in general.

Earlier on there was already an investment agreement concluded between Directorate of FEZ “Karakul” and “Enter Steel Karakul” for construction of metal constructions plant with overall value of $15 million US dollars and a production capacity of 50 thousand tons per year.