The Ministry of Investments, Industry and Trade and the Saudi company Riyadh Cables Group signed an agreement on joint drafting of a project to set up a high-voltage cable production unit in Tashkent, the ministry's press service said.
According to the Ministry of Investments, Industry and Trade, the $122 million project will ensure the production of 24,000 tons of cable products per year and create 340 jobs.
Riyadh Cables Group Company, the largest cable manufacturer in the Middle East and Africa region, will acquire a controlling stake in the Uzbek company Artikul Aziya Kabel, which "has become an important step in its strategic expansion into Central Asia and the creation of a center of excellence in cable production in the CIS countries," the statement said. The completion of the deal will depend on obtaining the necessary regulatory approvals and fulfilling standard conditions.
"Currently, the group of companies has large production facilities in Saudi Arabia, the UAE, and Iraq, supplying power and telecommunication cables to more than 30 countries. The takeover of Artikul Aziya Kabel will be the next stage in the creation of a Central Asian production hub, which will complement the group's regional network and boost its export potential," the Saudi company said in a statement.
After the deal closes, the group plans to expand the range of products of Uzbek firms to include low, medium, and high-voltage cables, as well as invest in automation and modern production technologies. The production unit in Uzbekistan could eventually become a regional center for the production and export of cable products, strengthening the global supply network of Riyadh Cables Group.
Earlier, the chairman of Uzeltelsanoat, Mirziyod Yunusov unveiled plans to localize the production of 500 kV ultra-high voltage cables in cooperation with Riyadh Cables.
"Riyadh Cables proposed to localize in Uzbekistan the couplings necessary for the company, that is, connecting elements and accessories." "First of all, this will allow us to optimize imports and produce in-demand products in Uzbekistan," he underscored.
It should be recalled that on October 14, following a meeting of the intergovernmental commission and the Council of Entrepreneurs of Uzbekistan and Saudi Arabia, 10 documents were signed.
President Shavkat Mirziyoyev, at a meeting with the Minister of Investment of Saudi Arabia, Khalid al-Falih, stated that the total value of new energy and renewables, tourism, transport and logistics, IT, infrastructure construction, housing and communal services and water management projects were valued at $4 billion. The Minister of Investment, Industry and Trade Laziz Kudratov, in an interview with the Uzbekistan 24 TV channel, said that the total portfolio of projects between the two countries had reached $30 billion.
