OREANDA-NEWS. June 15, 2012. The Government of Uzbekistan has adjusted the program of deepening the localization of production of finished goods, components and materials for 2011-2013 by an Order dated May 18 "On Making adjustments to the program of localization of production of finished goods, components and materials based on industrial cooperation in 2012". It includes 21 new projects worth USD  42.5 million.

The undertaken measures are aimed at further stimulating production of export and import products, strengthening of intra-and inter-industrial cooperation, the document notes.

The list of new projects of the proposed nomenclature of import commodities include such items as plastic, finished medications, polypropylene yarn, household gas stoves, steel pipes of various modifications, washing powders, detergents and other products.

Half of the new projects will be implemented on imports for capital facilities. It is expected that 18,000 tons of steel pipes of various modifications worth more than USD 26.5 million will be released in 2012 on two production facilities in Tashkent – JV LLC Gold Lida and LLC Real Premium Service.

A wide range of washing powders, liquid detergents for washing dishes, shampoo based on surface-active substances and other products worth USD 5.4 million is localized by FE LLC My lovely Asia Co. The foreign company My lovely Asia was established on August 29, 2008 for the production of consumer goods. According to FE My lovely Asia Co, it currently produces more than 50 types of goods are quite demanded on the market. More than 1,000 institutions of the republic are among the company's clients.

As part of the updated program of localization the first 250 tons of plastic will be manufactured this year OJSC Anteks, SJSC O'zbekyengilsanoat (Andijan). As experts explained of flexible PVC have a wide range application. They are used in the manufacture of shells, electrical wires, materials for wall coverings, upholstery, food packaging, production of artificial leather and footwear and are of high demand in the electrical, furniture, construction, food, footwear, automotive and engineering industries.

Work and knitted gloves made of cotton-polyacryl fibers for mechanical engineering and cast iron radiators of JV NSCB on irrigation, Uzmontazhspetsstroy association are excluded from the program of localization due to lack of demand and lack of competitiveness of products in price and quality, the document notes.

The companies included in the program of deepening the localization of production of finished products, components and materials for the period 2011-2013 received incentives and preferences. Until 2014, they are exempt from customs duties for imported technological equipment and spare parts and components not produced in the country. A good incentive is the exemption from income tax, single tax, property tax in terms of fixed assets used for the production of localized products.

The saved funds are directed on creation of new, expansion, renovation, modernization, technical and technological re-equipment of existing facilities, the introduction of quality management systems, funding research and development activities.