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| Uzmetkombinat rolling mill |
Uzmetkombinat Rolling Mill Project Receives Major Financial Backing
Uzbekistan’s largest steel producer, Uzmetkombinat, secured €132.5 million to complete its rolling mill complex in Bekabad. This funding, arranged by Standard Chartered with ICIEC’s support, ensures the timely construction of a new casting and rolling facility. As a result, the plant will strengthen the domestic steel supply chain and reduce reliance on imports. The project highlights Uzbekistan’s commitment to steel industry self-sufficiency.
Strategic Impact of the Uzmetkombinat Rolling Mill on Local Economy
The new Uzmetkombinat rolling mill will produce up to 1 million tons of hot-rolled coils annually, previously imported. Meanwhile, local pipe and building material manufacturers will benefit from lower costs. Additionally, the Bekabad plant, employing over 8,000 people, supports thousands more in ancillary industries. Therefore, the project is expected to deliver significant socio-economic benefits to the region.
Advanced Technology and Regional Competition
Uzmetkombinat’s rolling mill uses Danieli equipment, including a 120-ton electric arc furnace, continuous casting machine, and modern rolling mill. In contrast, Chinese firm Shandong Aipurui Steel Plate Co. plans a $120 million steel plant in Fergana, increasing competition. However, Uzmetkombinat’s project prioritizes local production efficiency and industrial competitiveness, reinforcing Uzbekistan’s position in the regional steel market.
ScrapInsight Commentary
Uzmetkombinat’s rolling mill funding strengthens Uzbekistan’s steel self-sufficiency and reduces import dependency. The project will likely lower domestic HRC costs, improve supply chain efficiency, and create long-term socio-economic benefits, reinforcing the circular economy in steel production.
