Effective Reforming

“Uzstroymaterialy” Joint-Stock Company: Forward, to New Heights!


     In the republic the intensive work is under way to upgrade production in various branches of the national economy, establish new business and restart non-operating enterprises, construct new facilities and reconstruct existing infrastructure. It is against this creative activities that demand for products of “Uzstroymaterialy” Joint Stock Company is being increased. Therefore, the essential task of the company is to provide consumers with modern and high quality construction materials. The team of the joint-stock company successfully accomplishes assigned tasks, and this has already resulted in the manufacture of industrial production amounting to 2 432.8 billion UZS for the period of 9 months in 2017. Set target parameters have been exceeded. Consumer goods worth 219 billion UZS have been produced or 109.6% compared with the same period of 2016.
During the reporting period the company has produced the following: 5.91 million tons of cement or 101.3% with compared period of the last year, structural glass – 9.7 billion sq.m. (100.2%), dry mixes – 55.9 thousand tons (108.4%), wall materials – 45.1 million pcs. (112.4%), gypsum building plaster – 59.6 thousand tons (108.5%), sanitary stoneware – 36.5 thousand pcs., slate – 101.6 thousand tons (105.6%) and ceramic tiles – over 2 million sq.м. or 2.3 times more than for the corresponding period of the previous year.
JSC “Uzstroymaterialy” completely provides domestic consumers with construction materials and exports products as well. In 2017 the company sold abroad products at the total amount of 78.4 million USD.
Actively participating in the localization program, JSC “Uzstroymaterialy” has turned out products equal to 40.4 billion UZS during the period under review; this makes 152.9% to the forecasting indicators.
Broader attraction of financial resources, first of all, direct foreign investments, allows for modernization, technical and technological re-equipment of enterprises of the company. Joint activities with leading profile foreign companies provide for entering production of modern high quality construction materials available in a wide range. In view of this, the management of the joint-stock company gives particular attention to attraction of foreign investments and business partners. For example, according to the targeted part of the Investment program and taking into account the resolution of Interdepartmental council on implementation of large and strategically important investment projects, in 2017 it is envisaged to implement 13 projects with assimilation of 72.4 million USD (in equivalent) by means of all sources of financing, including attraction of foreign investments and loans of 15.3 million USD. During the period of January-September of the current year the investments of 52.7 million USD have been disbursed, this makes 101.5 % to the forecast of the period and 150.5% to the corresponding period of 2016.
The program of measures on maintenance of structural reforms, modernization and diversification of production for the period of 2015-2019 includes implementation of three projects worth 23.7 million USD by JSC “Uzstroymaterialy” during the current year. Under these projects investments amounting to 13.75 million USD have been assimilated, this is equal to 100% with regard to the forecast.
For the purpose of further development and improvement of construction materials production and ensuring production of high quality and corresponding to international standards, the Resolution No. PP-2692 of the president of the Republic of Uzbekistan dated December 22, 2016 provides updating 51 units of equipment at the amount of 9 million USD in 2017. For 9 months of 2017 the funds of 6.71 million USD have been used with the forecast of 5.45 million USD; that has made 123.2%. The specified amount has been channelled to replace and update 21 units of equipment; this has exceeded planned number by 2 units and provided 110.5% performance above target.
JSC “Uzstroymaterialy” consists of 100 enterprises of various forms of ownership, including: joint-stock and limited liability companies, private, joint and subsidiary enterprises and also LLC “StroymaterialyLITI” design and scientific-surveying institute.
According to the profile, enterprises provide building sites with the following products: cement, lime, gypsum and wall, roofing, finishing, waterproofing and heat insulation materials, and also decorative materials (glass, alcopon, marble and building granite, decorative elements). Enterprises produce more than 100 types of construction products.
Among the main activities of JSC “Uzstroymaterialy” there is ensuring implementation of measures on deep processing of local raw materials. The work in this direction allows to increase volumes of output, expand range of products and provide their competitiveness not only in domestic market but in international market as well, satisfy demand for types of high quality construction materials and also save currency.
JSC “Uzstroymaterialy” conducts its financial activities in line with market economy conditions and pursuant to the legislation of the republic. This provides profitability of the company and making planned payments in time. Enterprises of the company maintain tight control of receivables and payables. In order to avoid increase in accounts receivable, shipment of products is subject to advance payment, and shipment to the enterprises which have missed a deadline of debt repayment, will be implemented only after 100% advance payment.
Strict observance of contract terms is key aspect of the success. In particular, cement deliveries are carried out just-in-time, and delivery obligations through stock trading have been fulfilled by 104.2%.
Experts of JSC “Uzstroymaterialy” are guided by modern trends of construction industry, perform marketing research of local and foreign markets of construction materials, intensively introduce modern methods of corporate governance, widely involve highly skilled managers, including expatriates.
All enterprises of JSC “Uzstroymaterialy” follow uniform scientific, technical and investment policy, widely introduce advanced recourse and energy saving technologies of production of modern and high quality construction materials.
During the period of January-September, 2017 targeted implementation of the mentioned measures has resulted in reducing production costs by 79.8 billion UZS or 8.1%, including: by means of energy saving – 0.8%, by optimizing costs of raw materials – 2.7%, by reducing indirect production expenses and operational costs – 3.4%, by decreasing overheads – 0.7% and miscellaneous costs – 0.5 percent.
Small enterprises of JSC “Uzstroymaterialy” make a notable contribution to common business. During the reporting period enterprises of small and private business have manufactured industrial production worth 418.1 billion UZS, share of manufactured goods in the total volume of commercial products has made 17.2% compared with 16.7% for 9 months of 2016.
Targeted Program for new job and home based business creating is also successfully implemented. Since 2017 under fulfillment of the approved program 704 jobs have been actually created (planned – 662), including: under sector development program – 644 jobs and home based business – 60 jobs. Estimated figures have been exceeded by 106.3 percent.
In 2017 JSC “Uzstroymaterialy” is set to release industrial production at the amount of 3.1 trillion UZS, growth rate will make 107.4% in comparable prices.
Analyzing results of activities of the current year, it may safely be said that both forecasting indicators and contracts will be successfully fulfilled.
Vice-Chairman of JSC “Uzstroymaterialy”


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