A new Karakol free economic zone (SEZ) will be built in Bukhara province. The MTO (methanol to olefin) technology gas-chemical complex (GCC) will be built in the free economic zone.
Construction of an industrial cluster has begun By the decision of the Cabinet of Ministers, which will contribute to the development of high-tech related industries for the production of final products.
According to the Ministry of Energy, the Korakol MTO gas-chemical complex will become the largest plant in the republic for the production of polymers based on MTO technology, which enables the processing of natural gas methane.
The enterprise will produce polyethylene terephthalate (PET) and polypropylene (PP), as well as ethylene vinyl acetate (EVA) and low-density polyethylene (LDPE), which are new to the market of Uzbekistan.
The complex produces up to 730,000 tons of polymers annually and will become the largest polymer producer in the country and one of the few enterprises in the world that produces such materials from methane.
This is an important step towards the development of the country's energy industry, and serves to create the first industrial platform for the implementation of large-scale gas and chemical projects in Uzbekistan and Central Asia, says M. Shakirov, deputy general director of SEG, MTO project manager.
A number of tax, regulatory and other benefits are being provided for the residents of Karakol SEZ. In particular, tax benefits for property and water supply, as well as the right to import equipment and raw materials without duty have been granted for 10 years. Excise duty and income tax will be reduced by 50 percent and other benefits will apply.
A number of large enterprises producing polymer products of Uzbekistan have expressed interest in locating facilities in the territory of the SEZ. Among them are the largest carpet manufacturers SAG and UrGaz, pipe manufacturer Vero Group and Mergantex textile products.