Indorama acquired majority stake in JSC Kokand Superphosphate, Uzkekistan

Indorama have successfully completed the acquisition of 95.54% shares held by the Government of Uzbekistan on the 26th June 2019. Following the acquisition, held a town hall meeting with the current management team and all the 330 employees which was attended by the Chairman of the Ministry of Chemical Industries, the Deputy Governor of Fergana Region and the Mayor of Kokand City, together with other senior local officials. Indorama have smoothly effected the transfer of management to our team, who are now in control of management and operations of the company. During the town hall meeting, Indorama’s vision for the company was shared and all the current stakeholders were assured of the Group’s long term commitment towards sustainable operations, by modernising the plant, by carrying out an immediate TAM program.

Indorama intend to continue to operate the plant till end of August 2019, to fully consume the RM inventory and to meet outstanding commitments of finished product supplies, after which Indorama shall take a TAM shut down. Indorama have commenced the TAM mobilisation with immediate effect. Indorama expect the TAM to be completed by Q3 of 2020. Indorama have signed of mandate with IFC and EBRD on funding.

Indorama believe this transaction shall pave our way for expanding the Group’s business in the Central Asia Region across all the key crop nutrients.

About JSC Kokand Superphosphate

JSC Kokand Superphosphate is located 240 KM from Tashkent in Kokand City of Fergana Region of Uzbekistan. Company has designed capacity for production of Granular Ammoniated SSP 250,000 TPA (two trains) designed by "NIIGIPROHIMNAUKA“, St. Petersburg, Russia (now NIUF). Factory area is 30.2 Hectares with operational power line, gas pipeline, railway, water supply system with excess designed capacities for expansion of production base in future. Company has 6 operational rail sidings, 6.8 KM internal rail track and 8 internal loading/unloading points and 2 company owned rail engines. Company has 25,000 Tons of covered storage capacity of bulk fertilizers with provision for expansion up to 100,000 tons, 12,000 tons storage capacity of silos for rock phosphate storage and sulphuric acid storage tanks of 2000 Tons. Factory has currently 330 employees.

Indorama phase-1 plan to modernize the factory by replacing the old SSP plants with new plants ( 2 stream) produce 350,000 TPA powder SSP and 290,000 TPA granular Ammoniated SSP (1:18:0). In the phase 2 Indorama intend to enhance product basket with more high value products like TSP/DSP and different grades of NPKs.