Tajik-Chinese venture builds steel plant

Feb 07, 2011 12:00 AM

Tajik and Chinese companies are building a $ 21 mm steel plant in Tajikistan
A joint venture of Tajik and Chinese companies are building a steel plant to manufacture products for the construction industry. Chinese company Yu Liang Fu and Tajik open stock company Faroz have already begun construction on the $ 21 mm plant, steel news agency Steelorbis.com reported lately. The plant is expected to produce up to 196,841 tons in its first year, with future production slated to reach 393,682 tons per year. For raw material, the plant will make use of scrap metal, which will then be replaced by iron ore mined in Tajikistan’s Varzob district located north of the Tajik capital Dushanbe. The plant will be the first of its kind in Tajikistan.

Yu Liang Fu is expected to invest $ 8.4 mm in the plant’s construction, which also includes funding for the equipment. The Chinese corporation will receive 45 % of the plant’s profits. Faroz will invest the remainder of the funds, at $ 12.6 mm. The manufactured goods of the plant will be sold domestically as well as to Afghanistan, the Metalinfo.ru news website reported.

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