Why is this important
The departure of a major regional manufacturer signals possible barriers or changes in export-import relations between Kyrgyzstan and Uzbekistan in the construction industry. The loss of the export supply coordination function can affect construction material supply chains and increase logistics costs.
Key facts
- At the extraordinary meeting of shareholders on October 17, the company decided to close its representative office in Uzbekistan.
- The General Director was instructed to organize the closure of the office soon.
- The clause providing for representation in Uzbekistan has been excluded from the company’s charter.
- The representative office itself previously coordinated export deliveries and interaction with Uzbek partners.
- The plant is part of the United Cement Group holding company (Kyrgyzstan) along with a number of Uzbek production facilities.
Context
The export of construction materials, including cement, was previously a significant part of regional trade relations between Kyrgyzstan, Uzbekistan, and neighboring countries. As noted in the materials, the United Cement Group holding’s plants control several large cement producers in Uzbekistan.
