Uzmetkombinat raised €132.5 million for the construction of a rolling mill complex

Funding from ICIEC with the participation of Standard Chartered will enable completion of the casting and rolling project in Bekabad

Uzbekistan’s largest steel producer, Uzmetkombinat, has secured €132.5 million in financing with the support of the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) to complete the construction of a new casting and rolling complex in the southern city of Bekabad. This was reported by Kallanish.

The deal was arranged by Standard Chartered Financial Group. The loan is secured by a sovereign guarantee from ICIEC.

The new facility will enable the production of hot-rolled coils (HRC), which were previously imported entirely. The project is expected to increase Uzbekistan’s self-sufficiency in steel products and strengthen the competitiveness of the construction and industrial sectors. According to ICIEC estimates, local production of HRC will reduce costs for domestic consumers, in particular pipe and building material manufacturers, and increase the efficiency of supply chains.

The project is expected to have a significant socio-economic impact on Bekabad, which has a population of about 100,000. The plant already employs more than 8,000 people and supports thousands of jobs in related industries.

The complex will have an annual capacity of up to 1 million tons. The project is equipped with Danieli equipment, including a 120-ton electric arc furnace, a continuous casting machine, and a modern rolling mill.

Earlier, it was reported that the Chinese company Shandong Aipurui Steel Plate Co. Ltd intends to build a $120 million steel plant in the Fergana region of Uzbekistan. The project involves the construction of a steel processing plant in the Tarakkiot industrial zone in the Toshlok district.