President Shavkat Mirziyoyev chaired a meeting at the Uzbek Metallurgical Plant dedicated to the priority tasks for advancing the ferrous metallurgy industry to a qualitatively new stage of development.
The Head of State emphasized that ferrous metallurgy is one of the main sources of raw materials for economic sectors with a combined output exceeding $50 billion, including construction, building materials manufacturing, the automotive industry, mechanical engineering, energy, and the electrical industry.
To transition the economy to a model of technological and innovative development and increase the gross domestic product to $240 billion by 2030, it is necessary to ensure annual economic growth of at least 8–9 percent. In this context, the development of the metallurgical industry must be based on a sustainable raw material base, the production of competitive products, and the introduction of modern technologies.
At the same time, attention was drawn to the industry’s dependence on imports, high production costs and energy consumption, as well as the insufficient effectiveness of digitalization efforts and the implementation of artificial intelligence technologies. It was noted that, amid global instability and logistical challenges affecting key international transport corridors, these issues are becoming increasingly relevant.
Over the past decades, the country’s demand for flat-rolled products, long products, pipe products, and metal structures has increased threefold, reaching 5.5 million tons. The nuclear power plant, the fourth copper-processing plant, and the new copper smelter currently under construction alone will require approximately 2.5 million tons of flat-rolled products and reinforcing bars.
Over the next five years, new production facilities with a total value of $180 billion will be commissioned, infrastructure projects worth $27 billion will be implemented, and apartment buildings for 800,000 families will be constructed. As a result, annual demand for metal products is expected to increase 1.5-fold by 2030, exceeding 8 million tons.
Currently, the Bekabad Metallurgical Plant produces 40 percent of its rolled steel from recycled scrap metal, while the remaining 60 percent is manufactured using imported raw materials. Although 700,000 tons of ferrous scrap are supplied to the plant annually from across the country, an additional 500,000 tons remain in the shadow economy.
In this regard, all processes related to the circulation of ferrous metals will be tracked in real time through an electronic platform. To ensure a healthy competitive environment, maintain price stability in the industry, and strengthen regulatory oversight, a separate project office will be established within the Government. Instructions were given to launch the “E-lom” electronic platform from August 1 and establish control over the circulation of ferrous metals.
President Shavkat Mirziyoyev noted that the country possesses 1.5 billion tons of iron ore reserves. An agreement has been reached with Chinese partners to establish annual production of 650,000 tons of iron ore raw materials through the processing of ore from the Surun-ota deposit. The President emphasized the need to create capacity for the annual production of up to 1 million tons of steel through the implementation of the Tebinbulak deposit development project, as well as to accelerate the conclusion of an agreement on the annual supply of 700,000 tons of iron ore raw materials from Tajikistan’s metallurgical combine.
Emphasizing that major private enterprises are ready to establish a full technological cycle, from geological exploration and mineral extraction to the production of finished goods, President Shavkat Mirziyoyev stressed the need to create favorable conditions for their operations.
The Head of State noted that improving steel quality will also increase demand for raw materials such as manganese and ferrosilicon. He instructed responsible officials to use artificial intelligence technologies to identify promising areas and develop a geological program aimed at expanding the reserves of iron ore and other minerals required for its enrichment.
Around 150 small and medium-sized private enterprises currently operate in the metallurgical industry. To ensure their stable supply of raw materials, a separate company will be established to centralize raw material imports. The company will be allocated $200 million, and the imported raw materials will be sold exclusively through a commodity exchange.
Particular attention at the meeting was given to expanding the range of metal products and strengthening cooperation between major metallurgical enterprises and private companies.
The casting and rolling complex commissioned today creates opportunities to launch the production of goods worth a total of $1.5 billion for the automotive industry, specialized machinery, industrial equipment, household and agricultural appliances, and the construction materials sector.
Responsible officials were instructed to prepare a package of projects for the production of seamless pipes and cold-rolled steel, as well as for the introduction of 3D printing and high-precision metal-processing technologies.
The Industrial Park of Ecological Technologies of Uzbekistan will be established on a 90-hectare site within the Bekabad Metallurgical Plant, equipped with ready-made infrastructure. The park will house a research and development (R&D) center specializing in ferrous metallurgy, together with a modern laboratory authorized to issue internationally recognized certificates.
In addition, instructions were given to develop a program of cooperation projects worth a total of $100 million centered on major metallurgical enterprises in the Samarkand, Jizzakh, Namangan, and Syrdarya regions. This will enable the expansion of value-added chains in these regions and the localization of new types of products.
The meeting also discussed the digitalization of the metallurgical industry and the implementation of artificial intelligence technologies. It was noted that the Almalyk Mining and Metallurgical Combine has achieved results in reducing operating costs, production costs, and energy consumption, as well as increasing labor productivity through the use of artificial intelligence technologies.
A program will be developed aimed at increasing the efficiency of equipment utilization at metallurgical enterprises by 20 percent, reducing production costs by 10 percent, energy consumption by 15 percent, and maintenance costs and technological downtime by 20 percent through the implementation of digital and artificial intelligence technologies.
The Center for Economic Research and Reforms has been designated as the metallurgical industry’s think tank. In addition, the research centers of the Navoi and Almalyk Mining and Metallurgical Companies, the Uzbek-Korean Scientific and Technological Center of the Technological Metals Combine, Tashkent State Technical University, Navoi State University of Mining and Technologies, the Almalyk branch of Tashkent State Technical University, and the Almalyk branch of the National University of Science and Technology “MISIS” will be assigned to the industry.
These research institutions and higher education establishments will analyze demand for new types of materials, identify the projects required in each region to meet this demand and the optimal technological solutions, as well as determine priority areas for training in-demand specialists. Annual, three-year, and five-year development programs will be prepared for each region.
Beginning with the new academic year, a Department of Ferrous Metallurgy will be established at the Bekabad Metallurgical Plant, and a dual education system will be introduced.
The Center for Economic Research and Reforms has been tasked with launching a digital platform to consolidate information on issues affecting the metallurgical industry. A venture fund will also be established to finance and implement scientific developments.
Stressing the need for a “technological leap” in the industry, President Shavkat Mirziyoyev identified as priority tasks expanding the raw material base for ferrous metallurgy, reducing import dependence, the widespread adoption of digital and artificial intelligence technologies, expanding the production of new types of products, and strengthening cooperation with the private sector.
The meeting heard reports from the heads of the relevant ministries, agencies, and regional administrations.