Mirziyoyev Sets New Priorities for Steel Industry Development

Mirziyoyev Establishes New Focus Areas for Steel Industry Advancement

Tashkent, Uzbekistan (UzDaily.uz) — President Shavkat Mirziyoyev convened a meeting at the Uzbek Metallurgical Plant to identify key focus areas for the growth of Uzbekistan's ferrous metallurgy sector. He proposed initiatives aimed at broadening the industry's raw material base, decreasing reliance on imports, speeding up digital transformation, and integrating artificial intelligence technologies.

The president highlighted that the ferrous metallurgy sector provides raw materials to industries with a total output surpassing US$50 billion, which includes construction, building materials, automotive production, machinery, energy, and electrical engineering. He emphasized that to achieve a GDP of US$240 billion by 2030 and maintain an annual economic growth rate of 8–9%, the industry must evolve based on a reliable raw material supply, competitive products, and advanced technologies.

During the meeting, it was noted that the sector still relies heavily on imported raw materials, grapples with high production and energy costs, and has not made significant strides in digitalization or the adoption of artificial intelligence. These issues were deemed particularly pressing in light of global economic instability and logistical challenges.

Data shared at the meeting indicated that national demand for sheet and long steel products, pipes, and metal structures has surged threefold over the last decade to reach 5.5 million tonnes. The construction of a nuclear power plant, the fourth copper processing facility, and a new copper smelter alone will necessitate approximately 2.5 million tonnes of sheet steel and reinforcing bars. By 2030, annual demand for steel products is projected to exceed 8 million tonnes.

Mirziyoyev directed officials to enhance oversight of the scrap metal market. Currently, the Bekabad Metallurgical Plant produces around 40% of its rolled steel products from recycled metal, with the rest sourced from imports. Although the plant officially receives about 700,000 tonnes of scrap metal annually, authorities estimate that an additional 500,000 tonnes are not accounted for in official statistics. An electronic platform, E-lom, is set to launch on August 1, and a dedicated project office will be established under the government to oversee the ferrous metals market, foster competition, and ensure price stability.

The meeting also discussed strategies to bolster the industry's raw material base. Officials reported that Uzbekistan possesses iron ore reserves totaling 1.5 billion tonnes. A partnership has been established with Chinese counterparts to produce up to 650,000 tonnes of iron ore raw materials each year by processing ore from the Surun-ota deposit. The president also urged officials to expedite the development of the Tebinbulak deposit, which is anticipated to facilitate annual steel production of up to 1 million tonnes, and to finalize an agreement for the annual supply of 700,000 tonnes of iron ore raw materials from Tajikistan's metallurgical plant.

Mirziyoyev underscored the importance of creating favorable conditions for large private enterprises interested in establishing integrated production chains, spanning from geological exploration and mining to the production of finished steel products. A specialized company will be formed to centrally import raw materials for small and medium-sized metallurgical firms, with US$200 million allocated for funding, and imported raw materials will be sold exclusively through exchange trading mechanisms.

The meeting also emphasized the need to diversify the range of steel products and enhance industrial collaboration. A new casting and rolling complex at the Uzbek Metallurgical Plant, inaugurated on the same day, is expected to generate production valued at US$1.5 billion for the automotive sector, specialized machinery, industrial equipment, household appliances, agricultural machinery, and construction. Relevant agencies were tasked with preparing projects for the production of seamless pipes, cold-rolled steel, and the implementation of 3D printing and precision metalworking technologies.

A 90-hectare eco-technology industrial park is planned for the Bekabad Metallurgical Plant, which will feature a research center for ferrous metallurgy and a modern laboratory for international product certification. Officials were also instructed to develop a US$100 million program for industrial cooperation projects involving metallurgical enterprises in the Samarkand, Jizzakh, Namangan, and Syrdarya regions.

The integration of digital technologies and artificial intelligence was a central theme of the meeting. Officials highlighted the experience of the Almalyk Mining and Metallurgical Complex, where AI has successfully reduced operational costs, decreased energy consumption, and improved labor productivity.

Following the president's directives, a digital transformation program will be developed for the industry, aiming to enhance equipment efficiency by 20%, lower production costs by 10%, reduce energy consumption by 15%, and cut maintenance costs and production downtime by 20%.

The Centre for Economic Research and Reforms will oversee scientific support for the sector, collaborating with research units from the Navoi and Almalyk mining and metallurgical combines, the Uzbek-Korean Scientific and Technological Centre of the Technological Metals Plant, Tashkent State Technical University, Navoi State University of Mining and Technologies, and the Almalyk branches of Tashkent State Technical University and the National University