OREANDA-NEWS. Germany's BMA AG is participating in construction of new sugar plant in the territory of the Angren special industrial zone.

According to the company, Khorazm Shakar and Angren Shakar asked BMA to explore the possibilities of a collaboration in this refinery project with the capacity of 1,000 tonnes a day.

BMA AG prepared in close collaboration with its new subsidiary BMA Russia a basic concept for a refinery with a capacity of 1,000 t of raw cane sugar per day

The project takes into account the latest technical standards and cost efficiency, formed the basis for all further steps that had to be taken for preparation of the project.

In 2012, the investor and BMA signed an agreement for providing the essential engineering services for the refinery. The engineering for the project will be a real joint venture between Uzbek, Russian and German companies.

The technological plant elements of the refinery, including machines and apparatus, pipelines, and electrical and automation systems, will be planned by BMA, together with BMA Russia and BMA Automation.

An agreement has been signed with OOO “SU - 255” Voronezh, Russia, who will act as subcontractors for construction planning.

In view of the approvals and permits that have to be obtained for planning operations in Uzbekistan, an Uzbek company has been assigned the function of general planner for the refinery and planner for the non-technological elements.

As part of its construction planning services, BMA will also be in charge of supervision and of commissioning the architects to carry out the performance evaluation.

The project with the cost of USD 108.5 million will be implemented in cooperation with Singapore's and Welton International Enterprises Pte. Ltd. and Kito Investment Pte. Ltd., as well as Austrian SЕID Handelsgesellschaft m.b.H.

Investors will create foreign enterprise Angren Shakar with the charter capital of USD 20 million, which will be formed due to resources of founders, re-investment of income, received from current activities in Uzbekistan.

The founders will provide USD 55 million as fees for the charter capital and direct loans to implement the project. Singaporean Oriental Singapore Capital Pte. Ltd. will also issue USD 53.45 million of loan under guarantee of the founders.

Khorezm Shakar JV OJSC is an only sugar producer in Uzbekistan. Khorezm Sugar Plant was commissioned in 1998. The cost of the plant is USD 83.25 million. Preliminary plant was designed for processing sugar-beet, which was planned to plant in Uzbekistan. The capacity of the plant was 3,000 tonnes of sugar-beet a day. But low crop pushed to conserve the plant.

Shakar Investment, an Uzbek-Austrian-US joint venture, carried out project on transfer of the capacity to processing of cane sugar with the cost of USD 2 million in 2002. Currently, the plant can process 1,000 tonnes of cane sugar a day.

Shareholders of the company are Motril Investments (Panama, 69.43%), KITO Investments (Singapore, 20%), SEID Handels GmbH (Austria, 10%) and employees (0.57%).

Currently, Khorezm Shakar JV OJSC satisfies 50% of needs of population in sugar. Other part is imported into Uzbekistan.