The Spanish company MAXAM, which owns 49 percent of MAXAM Chirchiq plant, is demanding compensation from the Uzbek government for breach of contract. Uzkimyosanoat and the State Assets Management Agency said that MAXAM did not perform its obligations to attract investments and is currently refusing to perform them.
Earlier, MAXAM applied to international arbitration in London to resolve the dispute with Uzbekistan. The dispute concerns the MAXAM Chirchiq chemical enterprise, which is owned by MAXAM and the state-owned Uzkimyosanoat in a 49/51 ratio.
The statement posted on the Uzkimyosanoat website states that in 2007 Maxamcorp International S. L., together with Uzkimyosanoat JSC, created two joint ventures - MAXAM Chirchiq JSC and Ammophos-MAXAM JSC.
Reportedly, despite its commitments, the Spanish company has not performed its obligations to attract investment and is currently refusing to perform them. According to them, joint ventures have been successfully operating for almost 15 years.
"MAXAM's claims are nothing more than an attempt to hide its breaches of contractual obligations and avoid liability for poor management, failure to invest and non-compliance with Uzbek law," the statement said.
Uzkimyosanoat and the State Assets Management Agency expressed surprise that MAXAM disclosed its claims when the parties' questions and positions are in fact confidential. The Uzbek side stated that it did not violate any contractual or other obligations and acted within the framework of the law.
At the same time, Uzkimyosanoat and the State Assets Management Agency voiced a number of claims against the Spanish company. In particular, they noted that MAXAM was aiming only at receiving dividends during the entire period of its work and did not aim to improve the performance of joint ventures. MAXAM's commitments included modernizing the two JVs, providing state-of-the-art technology, upgrading production equipment and technical support. The message emphasizes that MAXAM has not performed its obligations.
“This is also confirmed by the accident of outdated equipment that occurred in October 2022 at the MAXAM Chirchiq JSC plant,” they recalled.
Earlier it was reported that as a result of an explosion at the plant, two employees received minor burns.
Uzkimyosanoat and the State Assets Management Agency noted that the profit of the joint venture has increased significantly in recent years. The existing facilities have been upgraded and performance is improving.
“This was achieved solely through the efforts of the Uzbek side without the participation of the investor and its representatives,” the statement said.
Uzkimyosanoat and the State Assets Management Agency expressed hope for a legal settlement of all existing contentious issues. The Uzbek side also stated that it is preparing a legal position on the claims of MAXAM, which will be presented in due course.
