ЗАВОД АНДИЖАН КАБЕЛЬ www.cable.uz THE REPUBLIC OF UZBEKISTAN РЕСПУБЛИКА УЗБЕКИСТАН Uzbekistan - is an ancient history and architecture country. The East architects amazed travelers and sellers, who were going along The Great Silk Road with magnificence and beauty of their creation. Such cities as Samarkand, Bukhara, Khiva by right are considered as a pearl of The East. There are more than four thousand historical monuments at the territory of the Republic of Uzbekistan. The Republic of Uzbekistan today - is a dynamic developing state of the Central Asia. Being achieved the independence in 1991 year, the country raised up the way of the democratization and economic reforms, reviving of historical memory and national self-consciousness. The Uzbekistan model of stage-by-stage reforms to market economy obtained the wide recognition abroad, where economy has the priority above policy, state is the main reformer and guarantor of the citizen’s social interests. The country turns from the cotton- feed basis to a high-technology industry. THE REPUBLIC OF UZBEKISTAN РЕСПУБЛИКА УЗБЕКИСТАН The Republic of Uzbekistan is situated at the central part of Central Asia, between two rivers- Amudariya and Sirdariya. There are Turan lowland and Tien Shan Mountains, at north-west of the Republic and the mountain ranges of Pamir-Altai at the south-east of the territory. Kizilkum desert is situated at The North. Uzbekistan borders upon the following governments: Kirghizstan, Turkmenistan, Kazakhstan, Tadjikistan and Afghanistan. State territory of Uzbekistan forms 447.7 thousands of km2. The mountains and foothills forms approximately 1/5 of the Uzbekistan’s territory. The population of Uzbekistan is more than 26 millions of people. At present time there are more than 130 nations and nationalities in Uzbekistan. The national structure is the following: Uzbek-72%, Russian-8%, Tadjik-5%, Kazakh-4%, Tatar-2%, Karakalpak-2%, Kirghiz, Turkmen, Korean, Uigur, Jewry, Armenian, Ukrainian and others. A state language is the Uzbek; the Russian language is a language of international relations. The capital of Uzbekistan is Tashkent. THE REPUBLIC OF UZBEKISTAN THE REPUBLIC OF UZBEKISTAN РЕСПУБЛИКА УЗБЕКИСТАН The Republic of Uzbekistan has a big industrial and mineral-feed potential, a unique agricultural raw material, sizeable volumes of halffinished products, which are getting in the processing, rich natural resources and developed infrastructure. There was revealed a wide complex of treasures of the soil, which includes about 100 kinds of minerals, 60 of them already used in national economy. By the confirmed resources of such kinds of treasures of the soil as gold, uranium, copper, natural gas, tungsten, potassium salt, phosphorite and kaolin, Uzbekistan takes the leadings places not only in CIS, but also around the world. So, by gold resources the Republic takes the forth place in the world, by the level of a gold mining - seventh place, by copper resources tenth- eleventh place, by uranium resources - seventheighth place and by uranium mining – eleventh-twelfth place. Most of the available resources of mineral feed not only supply the operating mining complexes during a long time, but also permit to increase a capacity, anew organize the mining of such the most important treasures of the soil as gold, uranium, copper, lead, silver, lithium, phosphorite, potassium salt, fluor-spar, wollastonite, agrochemical ore and others. The copper producing in the Republic of Uzbekistan forms 150 thousand tons. A grade of the produced copper is 99.985% considered as one of the best around the world. This fact allows to produce the high qualified cable-wire production, which meets the world requirements. The structures of The Republic of Uzbekistan consist of Autonomous Republic of Karakalpakstan, 12 regions. INVESTMENT POLICY OF THE REPUBLIC OF UZBEKISTAN ИНВЕСТИЦИОННАЯ ПОЛИТИКА УЗБЕКИСТАНА Main importance also has that fact the Republic of Uzbekistan created a favorable tax climate with the aim of support of the newly created enterprises and attraction of new investments and investors. There are four kinds of tax benefits: temporary exemption from tax; decreasing of the tax rate; lessening of taxable base; delay of discharge of a tax obligation (a tax credit). These incentives are used in different combinations for wide range of enterprises with foreign investments. Manufacturing enterprises with foreign investments, carrying out the capital investments in the projects included in the investment program of the Republic of Uzbekistan, are exempt from income tax for 7 years from the date of registration. INVESTMENT POLICY OF THE REPUBLIC OF UZBEKISTAN Newly established enterprises, including the enterprises with foreign investments (except for exchanges; wholesale, procurement, brokerage and trading) created at the territory of villages, kishlaks are exempt from income tax in the first year since the moment of establishment (registration), in the second year in the amount of 25% and in the third year - in the amount of 50% from the established rate. The technological equipment imported by foreign investors as investment fund of enterprises with foreign investments exempted from value add tax. From July 1, 2005 the enterprises of economy’s sector, attracting direct private foreign investments exempted from: - profit tax; - property tax; - tax on development of a social infrastructure and an territories accomplishment; - ecology tax; - single tax for micro-firms and small enterprises; - compulsory payments to the Republican Road Fund. Moreover, there are a lot of advantages provided for each enterprise individually. The enterprises with foreign investments along with existent tax remissions, guarantees and intensives, also uses of all kinds of tax remissions, provided for the legal entities of the Republic of Uzbekistan, who work in priority branches and directions of economics of Uzbekistan, particularly in producing of export oriented and import replaced production, in producing of consumer goods, goods of keen demand and etc. The advantages and preferences for enterprises with foreign investments along with the tax branches of the legislation include tariff legislation, banking legislation and etc. ANDIZHAN REGION Andizhan region is situated in the eastern part of Ferghana valley. The population of Ferghana valley forms of 14 millions people. There is a boarder of three states: Uzbekistan, Tadjikistan and Kirghizstan through Ferghana valley. This fact has a beneficial effect on intergovernmental economic relationships. There are three regions of The Republic of Uzbekistan: Ferghana, Andizhan, Namangan in Ferghana valley, who are the most industrialized regions of our Republic with a developed infrastructure and transportation network including a trunk-railway, highway, air transport. Owing to a developed transport structure the dealerships with many countries have been arranged. At the same time experience and possibilities of international forwarders are used in process of delivery of materials which is carried out in general by railway and trucking. Andizhan region takes an area of 4200 square kilometers with a sharp-continent climate. Population forms of 1 899 000 people, average density – 499 people at 1 square kilometer. The most developed sectors of economics are agricultural and industrial manufacturing. Now there are 85 joint ventures with Russia, Korea, Germany, America and other countries of Asian region and European Community. ANDIZHAN REGION Andizhan city is an administrative center of Andizhan region, situated in south-east border of Ferghana valley (about 475 km to the East from Tashkent and 45 km to the West from Osh).This city is the center of petroleum producing. Andizhan has several petroleum refineries, an automobile plant and a lot of adjoining enterprises manufacturing component parts for producing UZDEWOO’s cars. Moreover a dominating structure of the economics is cotton cultivating and processing, which are presented by several cotton-processing factories. The turnover of a foreign trade of Andizhan region amounts more than 1.2 billion USD. «ANDIJANKABEL» JV JSC “Andijankabel” JV JSC is situated in Khanabad city. It is industrial city with 30000 of population and 34.71 hectare of territory. “Andijankabel” JV JSC is a leading company of cable-wire industry. The production space averages 70 804 square meters, a free space 16 244 square meters. Construction of “Andijankabel” plant was started in 1982 and finished in 1991. “Andijankabel” JV JSC has efficient equipment fleet with working area and high skilled specialists. In 2000 year “Farial” Company (Russia, Samara city) purchased 51% of the plant’s shares and “Andijankabel” plant was reorganized to the Joint Ventures. «ANDIJANKABEL» JV JSC «ANDIJANKABEL» JV JSC “Andijankabel” plant is one of the newest and largest plants at the territory of former USSR up to present. The plant is equipped with modern equipment of Nokia (Finland), SKET (Germany), UDAW (Germany), Nextrom (Finland), Wiedenbach (Germany). There are set up a modern equipment of world producer OTOKUMPU (Finland) for manufacturing an oxygen-free copper rod. The main suppliers of stuff and materials are leading world producers: polyethylene of BOREALIS (Sweden), master batch of POLY ONE (Belgium), aluminapolyethylene of ALKAN (Germany), copper rod (Uzbekistan). The measures for improving and extra supplying of the existing equipment with new machinery and electronic control-measuring blocks were carried out within short period. In spite of a big and new fleet of equipment, investors aspire to improve reached results, introducing a new productive capacity. So for improving the reliability of our copper rod “Andijankabel” JV JSC jointly with “OUTOKUMPU” Finnish Company set up a new line of oxygen-free uninterrupted casting of copper rod-Upcast US18X. The production capacity of this line is 7500 tone per year. Upcast technology of uninterrupted casting of copper rod and copper alloys is one of leading in the world. As a result of the introducing manufacturing of cable-wire production gained its own complete cycle. «ANDIJANKABEL» JV JSC For controlling of quality of the producible output there are set up new measuring equipment in the plant. The technological processes of manufacturing are drowned on the latest attainments of cable industry. The output of high quality cable and wire production putted right under direction of skilled specialists, which already made a good showing both within Uzbek market and outside. As a result our enterprise has been given a certification of International system of quality management ISO 9001:2000 by RV TUV Company (Germany). INVESTMENT IN FUTURE Being a town-planning enterprise “Andijankabel” plant keeps an active work in settling of the matter of placing the population in a job. At present, there are working more than 2000 people. Average monthly work of one worker amounts more than 3 million sum, monthly turnover – 6 billion sum. Average wage -about 100 thousand sum, it is twice more than wage in other regions (1$=1200sum). At the same time new project are realized at the plant every year. These projects allow the supplying young personnel, trained on college basis, with a work. The main sponsor of this college is “Andijankabel” plant. “Andijankabel” JV JSC has a necessary personnel potential. At the plant the qualified specialists of marketing and management work, technical staff has a special training for supplying a high quality of our production. With a view to improve professional level, the best working specialists take courses of raising the level of skill, work on probation at leading enterprises of Russia. The study-industrial base of training such specialists as expert in repairing and working of automated line, technician-programmer, accountant-auditor, IT experts, experts in repairing of computer net and office equipment and others was established by own forces of “Andijankabel” plant. INVESTMENT IN FUTURE First in the Republic of Uzbekistan in cooperation with “Andijankabel” JV JSC a trustee council has been set up. It takes up problems of young people studying and rendering assistance to schools and schoolboys, colleges and students. Moreover, a close connection has been arranged with Uzbek-Sweden project of developing of professional skills. The project is current by sir Hans Ditler Hopfner (Sweden agency of development and cooperation, tel: +99871-71-19-44-37, e-mail: hopfner@sdp.bcc.com.uz) and sir Urs Herren (permanent consul in the Republic of Uzbekistan and Kirghizia at The Representatives of foreign business in Sweden, tel: +996-31-266-64-80, e-mail: urs.herren@sdc.net). You can find any information about the project at the website: www.seco.admin.ch. In the context of this project Sweden teachers give lectures, experience exchange takes place. They supply educational classrooms with new training aid, computers, educational stands, etc for improving a quality of teaching. Highly qualified pedagogical staff of the college amounts 36 teachers of the first and high classes. At present 850 students, going to the college, will take a worth place in rows of our enterprise INVESTMENT IN FUTURE «ANDIJANKABEL» JV JSC There are successfully working UzKodzhi Limited, Uzbek- Korean Joint Ventures, being part of «UzAutoprom»-automobile producing association of Uzbekistan. Every year UzKodzhi Limited produces on sale 110000 sets of auto wisps for manufacturing UZDEWOO cars: Nexia, Lasseti, Damas, Tiko, Matis. The total amount of annual output is about 15 million USD . «ANDIJANKABEL» JV JSC We should note the main automobile manufacture is situated in 60 kilometers from “Andijankabel” plant that allows reacting effectively upon appearing applications and needs. Our specialists have worked out the technology of producing of the auto wires according to special requirements of UzDewooAuto Company in order to reduce the expenses on delivery of the wires from South Korea. They carried out all necessary tests and were given the certificates of conformity on serial wire producing, which are used in UzDewoo’s cars. Now they have made contracts on delivery of our production to UzKodzhi Limited and car factory SamKochAvto, JV JSC (Uzbekistan, Turkey). «ANDIJANKABEL» JV JSC We hope the aforesaid facts allow you to consider our enterprise as a reliable and advantageous partner in developing of new production, which could supply motor-car industry requirements of Asiatic region.