Tashkent metallurgical plant comments on its bankruptcy 

The Tashkent Metallurgical Plant made an official statement after it became known that its founders had changed and faced the risk of bankruptcy.

Earlier, the Reconstruction and Development Fund, which owns 49.9% of the plant on behalf of Uzbekistan, appealed to the court and succeeded in expelling the remaining two founders of the LLC company – Metalloinvest Holding (41.87%) and Miramonte Investments (8.23%) from the company’s participants.

According to the foundation, the “inaction” of these two founders put the factory at risk of bankruptcy. In particular, the net loss at the end of 2022 was 316.8 billion soums, and the accumulated loss in 2017-2022 was 916.92 billion soums (about 79.5 million dollars).

The court satisfied the claim of the Reconstruction and Development Fund and removed the two responsible founders from the company registered offshore. Thus, the factory, with its losses and debts of millions of euros, was left at the disposal of the state fund.

The statement released by the Tashkent Metallurgical Plant on July 7 emphasizes that the state is not responsible for the company's obligations.

“Changes in the composition of the founders of the company do not affect the stability of production and the ability to fulfill obligations to creditors on time.

TMP debt is paid through commercial activities. The state is not responsible for the company’s obligations,” the statement said.

The company noted that “attracting loans to finance construction and production is a common practice for large enterprises” and announced that the plant plans to become profitable in 2026, according to the approved plan.

For information, the Tashkent metallurgical plant, launched in 2020, produces galvanized and cold rolled steel with polymer coating.

The total cost of the plant project was initially estimated at 278.2 million euros, later this amount was increased to 334.47 million euros.

Of this, 164.5 million euros are a 10-year loan from the Export-Import Bank of Russia, 154.7 million euros are funds from the Recovery and Development Fund, and 15.1 million euros are a loan from Asakabank. The payback period of the project is indicated as 9.3 years.

The project of construction of the plant on an area of 49.7 hectares was implemented by the Russian “Metprom” group on the basis of the condition of handover. The implementation of the project was managed by the foreign company SFI Management Group.