He said the money was spent on the launch of two new production lines, for wire and welding electrodes, as well as the implementation of new rolling technology for rebar.

The line to produce steel wire with diameter of 2 to 8 mm can churn out 6,000 tonnes annually, while the electrode line can produce 500 tonnes per year.

The Uzbek Metallurgical Plant in 2007 adopted a US$49 million modernization program for 2007-2011, which includes nine projects.

The program is expected to boost steel production by 12.7% to 695,000 tonnes from the 616,700 tonnes produced in 2006, and output of long products by 7.5% to 492,000 tonnes from 457,700 tonnes. Output in value is expected to grow 30.5%, with exports increasing by 49% to US$130 million.

In 2008, the company plans to modernize its electric-arc furnace, including replacement of the transformer, at a cost of US$7.4 million. This project is expected to boost the furnace’s productivity by 100,000 tonnes, bringing capacity up to 650,000 tonnes per year.

The plant produces more than 95% of Uzbekistan’s crude steel and 100% of the country’s steel rolled products. The plant, which operates on scrap metal, is not operating at full capacity due to a decline in scrap shipments. It processes some imported scrap on a tolling basis.

The state owns 51% of the plant, employees hold 9.3% of shares, and the National Bank for Foreign Economic Activities, carmaker UzDaewooAuto, the Navoi Mining & Metals Works and Almalyk Mining & Metals Works together hold 17.7%.