(English) Expanding Markets for Products

2/2024

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     Joint Stock Company ‘Navoiyazot’ is the most important and largest segment of Joint Stock Company ‘O`zkimyosanoat’. Currently it is one of the leading enterprises of chemical industry not only in Uzbekistan but also in Central Asia. As for now there are 7 complexes at the enterprise, each of which employs about a thousand workers. One of the largest is the shop for production of polyvinyl chloride, methanol and caustic soda, which employs over a thousand people. The capacity of the plant is designed to produce 100 thousand tons of polyvinyl chloride, 300 thousand tons of methanol and 75 thousand tons of caustic soda per year. Every year its capacities and production volumes are increased, new production sites and workshops are created, advanced technologies and energy-saving equipment are installed, which allows increasing not only the production volumes but also their assortment – mineral fertilizers (ammonium nitrate, urea, NPK fertilizers, etc.), industrial chemical reagents, industrial chemical reagents, etc., etc. ), industrial chemical reagents and products, including those for the mining industry, as well as a wide range of technical liquid gases, resins and polymers (argon, oxygen, nitrogen, PVC, methanol, formalin, sodium chlorate and others). All products comply with international standards and find practical application in various industries. The range of their application in almost all sectors of the economy is expanding – agriculture, mining, energy, various industries (furniture, electronics and electrical engineering, food and light industry, oil and gas, automobile and aeroplane construction, construction and building materials, households and others). Nowadays it is difficult to name such a sphere where chemical products would not be used. Now it is impossible to imagine our modern life without everyday use of these products.
     As a result of systematic work carried out in recent years in the above-mentioned areas of activity and various other marketing and sales issues, the general indicators of development of both Navoiyazot JSC and the chemical industry as a whole have significantly improved. Thus, today ‘Navoiyazot’ JSC has a powerful logistic infrastructure, which allows to organize efficiently the transportation of products to both domestic and foreign markets. For the convenience of customers, we offer conditions of self-delivery, as well as delivery by wagon railway trains. Since 2018, products are sold through exchange trading on the platforms of UzRTSB JSC, which ensures transparency and accessibility for all consumers.
     Economic indicators are eloquent evidence of the steady growth of production volumes: for example, in 2023, Navoiazot JSC produced a total of 5.5 trillion UZS worth of finished products, including 1,778.2 billion UZS under the localization programme, and through the implementation of 7 projects under the Investment Programme, 132.1 million UZS of capital was used, of which 129 million UZS was foreign direct investment. Of all products produced by Navoiazot JSC last year, the largest volumes were output of ammonium nitrate (744,883 tones), urea (491,511 tones) and polyvinyl chloride (46,984 tones). According to the plan for 2024, 80,000 tons of polyvinyl chloride will be produced, of which 20,000 tones will be exported. Moreover, in 2024, according to the Investment Program, investments of 61.6 million USD were attracted within the framework of 9 projects, including foreign direct investments in the amount of 46 million USD and bank loans. These indicators demonstrate the scale, technical and technological backlog of Navoi enterprise.
     It should be noted, that the significant activation and strengthening of cooperation of Navoiyazot JSC not only with domestic partners within the framework of development of interregional and inter-sectoral relations, but also with foreign partners. Among domestic partners are such industrial giants as Navoi Mining and Metallurgical Plant JSC, Navoi Machine-Building Plant JSC, Kungrad Soda Plant LLC, Maksam Chirchik JV JSC, Kizilkum Phospharite Complex LLC (KPC), JV Continaz LLC and others. And interaction with SDK Group And LLC, Gidro Stanko Servis LLC, Uzbekkhimmash JSC, Navpromlitmash LLC contributes to the implementation of the localization and import substitution program, which allowed to master the production of localized products worth 2.934 million USD for 9 months of the current year.
     It is worth mentioning that, the crucial role of the marketing department as a regulator of various issues of activity of JSC ‘O`zkimyosanoat’, starting from the study of market conditions and consumer demand, to participation in international trade operations and co-operation. Taking into account the global trends in the chemical industry, the growing needs of foreign countries and sectors of the domestic economy for chemical products in the system of JSC ‘O`zkimyosanoat’ within the framework of the decree of the President of Uzbekistan dated 27 August 2017. ‘Within the framework of the Decree of the President of Uzbekistan dated 27 August 2017 ‘On measures to improve export-import activity of chemical industry organisations’ a foreign trade company – a single agent for export-import operations ‘Uzkimyoimpex’ LLC was established, and in Navoiazot JSC an export and marketing department was organised accordingly, which in close cooperation with ‘Uzkimyoimpex’ LLC forms and implements common tasks on strategic directions of joint development:
     ● gathering information and analysing trends in the world market for chemical industry products in order to increase production volumes and expand the range of chemical products in demand on world markets;
     ● study of prospective markets and demand for chemical industry products and, based on the data analysis, preparation of marketing reports and proposals on organisation of production of new types of products and expansion of export supplies; * analysis of supplied import chemical products and systematic deepening of the level of localization of chemical production;
     ● expansion of inter-sectoral co-operation, as well as with small businesses and large enterprises of the Republic;
     ● promotion of domestic chemical products to new foreign markets, including through the wide introduction of a modern logistics system along the entire supply chain, up to the shipment of goods on the basis of consignment and other forms of contracts;
     ● stable and uninterrupted supply of sufficient quantities of nitrogen, phosphate, potassium and complex fertilizers in their balanced ratio in accordance with agro-technological norms;
     ● participation in auctions, international trade fairs and other events held outside the Republic of Uzbekistan in order to ensure wide demonstration of domestic products and stimulate their sales; dissemination of information about the export potential of Navoiazot JSC and the chemical industry as a whole;
     ● analysis of prices for chemical industry products and conclusion of contracts with favourable prices for products taking into account changing conditions of foreign markets;
     ● ensuring timely receipt of funds for sold products, as well as deliveries of imported products within the terms established by contracts;
     ● attracting investments and foreign companies to implement projects in the construction of new facilities and workshops, as well as the production of new types of chemical products.
     International cooperation, including partnership with such large foreign companies as China CAMCE Engineering Co. and HQC Shanghai Company’ (China), Mitsubishi Heavy Industries, Ltd (Japan), CASALE SA (Switzerland), Linde GmbH (Germany) and other world-known companies allows JSC “Navoiyazot” to introduce advanced technologies and equipment, and thus to improve the quality and increase the range of chemical products, goods and raw materials according to the requests of both domestic and foreign customers. Modern technologies and automated system allow to produce high-quality export products that meet the requirements of world standards.
     By systematically implementing large-scale projects, the company ensures continuous supply of chemical products to domestic consumers and partners abroad. Since 2017, Navoiyazot JSC together with Uzkimeimpex LLC has been successfully selling its products for export. And the export potential of the enterprise is steadily expanding, and not only the geography, but also the volume of supplies. Thus, if in 2023 the export volume was 55.555 thousand US dollars, in the current year it has already reached 69.359 thousand dollars, which indicates an increase of 124 per cent. The main export products are ammonium nitrate, urea, PVC, liquid chlorine, ammonium chloride and other chemical products. In total, about 20 products are exported. The geography of supplies is constantly increasing, including European Union (EU) countries, Central and South Asia. The main export destinations are Afghanistan, Belarus, China, Kazakhstan, Russia, Turkey and many other countries.
     Navoiyazot JSC actively participates both in republican exhibition events and, together with Uzkimyoimpex LLC, in international ones. This allows us to strengthen our position in the market and present our products to new partners and consumers. Participation in major international exhibitions and fairs helps to promote products on foreign markets and increase sales. Exhibitions are not only a platform for presenting new products, but also an opportunity to study market needs and receive feedback from customers.
     In conclusion, it can be noted that Navoiyazot JSC is a dynamically developing enterprise, oriented towards increasing production efficiency and expanding sales markets. Innovative solutions, in particular the introduction of modern software systems for effective management of all production processes, international co-operation and a strong logistics base contribute to the stable growth of production and export volumes. The company’s strategy is aimed at further expanding the product range and implementing the localization program, optimizing logistics processes, strengthening its position in the global market and cooperation with all interested countries and companies.
 
 
Bakhtiyor ZHURAKULOV, Deputy Chairman of the Board for Marketing, Sales and Procurement
 
 
 

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