Before the construction season, international exhibitions provide the most reliable guide for businessmen on “what to use and where to buy” and the like. Just as in a chess game, such occasions allow us to look at a few moves ahead.

Construction exhibition has traditionally covered the major segments of the industry: building materials and equipment, varnishes and paints, roofing materials, heating and ventilation, floor coverings, windows and doors, plumbing, etc.

The construction industry, say experts of Uzstroymateriali, represents huge opportunities. This explains the interest of not only foreign but also domestic manufacturers in the promising market of the most densely populated state in Central Asia. This year, the construction exhibition featured products by 120 companies from 15 countries worldwide.

Up to 45% stands of the current exhibition represented Uzbek enterprises. For comparison, in 2008, their share was hardly 25%. Broad representation of domestic companies provide effective opportunities for promotion and business development, a guarantee that after some time the most modern building materials used in the world will appear in the domestic market.

The construction industry is one of the most promising and rapidly developing areas of the national economy and its consolidation is a part of a strategy of industrial development of Uzbekistan. Its further development requires introduction of new technologies and innovative solutions, advanced forms and methods of production. The government has paid special attention to strengthening the position of the industry and increasing its competitiveness.

Despite the decline in the investment flow caused by the global financial crisis, the amount of expected foreign investment in the construction industry of Uzbekistan increases in 2010. Experts attribute this to the consistent implementation of the program of anti-crisis measures for 2009-2014. It is planned to attract more than $ 53 million of loans and investment from international financial institutions, bilateral partners and foreign companies for the implementation of four investment projects in the construction industry scheduled for 2010. Clearly outlined development priorities ensure an interest of investors, large companies and corporations in the construction industry of Uzbekistan.

Most of the projects planned for 2010 are aimed at creating new production capacities, accelerating the introduction of scientific and technological progress. The priorities include building of a cement plant with the participation of American businessmen in Karakalpakstan with the capacity of 1 million tons of cement per year, organization of gypsum factory with technologies by German’s Knauf. In addition, jointly with Iranian and Italian partners it is projected to build a ceramic tiles factory with the annual production capacity of 3 million square meters, Bekabadtsement JSC is modernizing its existing production capacities with the construction of a new cement production line on a dry method.

Increased investment in fixed assets, construction of residential buildings lead to increase in the volume of industrial and residential construction and, accordingly, increased demand for building materials. In 2009, Uzbekistan against the background of growth in the housing and construction experienced a significant rise in the production of building materials. According to State Statistics Committee, in 2009 cement production increased by 3.1% and exceeded 6.8 million tons, roofing slate grew by 8.2% to about 470 million, output of conventional tiles, precast reinforced concrete structures and components rose by 6.7% to 145,400 cubic meters, which allowed to maintain high rate of contractual construction works. Enterprises of building materials industry realized by more than 1.3 trillion soums, with a growth rate of 108.7%. Despite the fact that the share of industry in the past year amounted to 4.7% in total industrial production, its role in the progress of a dynamically developing economy cannot be overestimated. Construction industry addresses important tasks of renovation of fixed assets, modernization of industrial enterprises, reconstruction and construction of social objects, housing stock and employment.

However, the building materials industry must keep pace with the growing demand, and this aim is achieved through investment in the sector.

In 2009, Uzbekistan has remained the leading player in the cement market of Central Asia. The Uzbek cement sector has managed to restore the output volumes quicker than the neighboring states and occupy its current niche in the international market due to reasonably good quality and competitive prices.

Currently, the largest cement companies are Qizilqumtsement JSC (3.08 million tons), Akhangarantsement JSC (1.74 million tons), Quvasoytsement JSC (920,000 tons). The enterprises of the cement sector produce 72% of the total volume of output in the construction industry of Uzbekistan.

Taking into account the infrastructural, industrial and social development, the internal demand for the “gray powder” is constantly growing. In 2009 it exceeded 5.5 million tons. Cement companies of Uzbekistan are actively engaged in the implementation of the housing construction program in rural areas. Regarding the export supplies, in 2009 it exceeded 1.3 million tons.

The development strategy of cement industry of the Republic of Uzbekistan for 2008-2012 provides for the establishment of new facilities not only through modernization, construction of new production lines at existing plants, but also through building new production facilities in several regions of the country. This will help keep Uzbekistan as a leading cement producer in Central Asia.

Demand determines supply. The construction materials fair held in 2009 once again confirmed this truth. With a well-arranged marketing study in this sector, new products manufactured in any other country appear in the domestic market within three or four months.

Producers are focused on the principle of “your demand – our income”. Apparently, this explains the fact that in recent years the country has launched new industrial bases for the production of modern building materials, such as drywall, dry mixes, aluminum-polymer composite panels for the decoration of facades, aluminum radiators, plastic panels for the walls and ceilings, metal and ceramic tiles and much more.

National construction market today has no shortage of binder materials: lime, gypsum, cement. Local construction companies do not lag behind international practice, when the finishing works increasingly involve gypsum-, cement- and lime-based dry mixtures. Their widespread use is conditioned by the high quality, durability, less labor input. At present, there are more than 40 dry mixtures production enterprises in Uzbekistan.

Door and window blocks, and plastic pipes production is increasing in the country.

Speaking to journalists, Chief manager at Uzstroymateriali Akbar Mukhitdinov stressed that today’s construction market of Uzbekistan has virtually all types of building materials. The supply ensures low prices for construction materials.

Particular emphasis is placed on the development of roofing materials production. A number of enterprises are engaged in the production of ceramic tiles, metal roofing material. If in 2003-2004, the country produced about 14.5 million pieces of roofing slate, in 2008-2009 these volumes have increased to 25-26 million pieces.

Having made sure that there is high demand for gypsum plasterboard, domestic entrepreneurs started developing their production capacities. At present there are 12 factories producing gypsum boards with the total capacity of 38 million square meters. In the beginning in 2011, a new major player in this market, Knauf Gips Bukhoro, will launch gypsum plasterboard production with a designed capacity of 20 million square meters of boards a year.

A joint German-Uzbek venture Bukhoro Gips is successfully operating in the market. It produces gypsum for cement plants, produces building plaster and dry mixes (60,000 tons per year).

With the support of the government, production of wall building materials is also expanding. Presidential decree of June 19, 2009 “On additional measures to stimulate increased production and improve the quality of wall materials” opens up great opportunities for increasing the output of low-cost baked bricks. This decree promotes energy-efficient technologies that reduce production costs, establishes tax incentives and preferences for “thrifty” producers. Last year the industry introduced 68 new brick plants with the capacity of 331 million bricks, in 2010 it is planned to establish 64 more brick enterprises with the output capacity of 382 million bricks per year. A significant result of the measures taken was the fall in prices for wall material.

“Today, the country carries on is a large-scale construction of new and reconstruction of existing industrial sites, homes, educational and health facilities, and other social and community objects,” said exhibitors UzBuild -2010. And the level of development of the construction industry in Uzbekistan is capable of addressing the most complex tasks, including provision with quality building materials. This can be seen in the shape of our cities that have greatly refined during the years of independence.

This year, our company marks 65 years since the establishment and release of the first output. We are currently producing about 60 types of paints, enamels, water-acrylic emulsions, dyes. The Tashkent plant is the only Central Asian producer of yellow ferric-oxide dye and red ferric-oxide pigment. Pigments are exported to the CIS countries, and enjoy high demand there.

Production capacity of the plant provides not only the domestic market, but also allows us to send the goods for export.

During three years of our participation in the construction exhibition, we began to cooperate successfully with many large manufacturing companies of the world. For example, we have developed close relationships with German-based Altendorf thanks to this exhibition. Our German colleagues repeatedly underscore that in recent years Uzbekistan has significantly developed the construction industry, mainly due to small businesses. It is known that in most developed countries the greater share of production of construction materials and provision of specialized services fall on private enterprises. At this stage, the development of small and entrepreneurial businesses in Uzbekistan will facilitate the successful implementation of production technologies. This means that the market of Uzbekistan today attracts many world producers of equipment. In this regard, this exhibition, without exception, will provide an excellent business field for successful cooperation.

Pyotr Babayants, general manager, COMFORT LTD:

Our company is engaged in delivery of construction equipment and furniture from the world’s major producers in Italy, Germany, Austria and Romania. In recent years, during the crisis and its negative effects, when the imports level in many countries has sharply fallen, our work in Uzbekistan has remained at the same level. I think it is the quality of the Uzbek market that gains the trust of our foreign partners. At the exhibition we are studying the demand in local markets, seek for new customers. At previous exhibitions, we attracted nearly 120 new customers a day. And for 10 years of our operation in Uzbekistan, we have more than three and a half thousand customers, including many large manufacturing companies from all over the country. So we are happy to regularly participate in this forum.

Over the years, our produce, including paint-and-lacquer materials, construction plastics, synthetic wallpapers enjoyed high popularity in Uzbekistan. We learned about this during the construction exhibition in 2007. Since that time we began construction of a mini-factory here in Tashkent. The enterprise successfully operates for two years now. At the last year’s exhibition, we identified the interests of Uzbek consumers and began manufacturing the necessary products for the local market. It is particularly noteworthy that during these two years the geography of distribution of our produce has significantly expanded. Today we cooperate with construction companies from the most remote corners of the country. I must say that I am extremely glad to see an inexhaustible desire of the Uzbek people to create.

Our company was the first authorized dealer of Russian factories to offer linoleum on the territory of Uzbekistan. Given the high demand for floor coverings and incentives given to producers and preference for cheaper products have decided to set up a production facility in the territory of the republic.

In December 2009 we started producing floor coverings (linoleum, PVC), of 1.5-2 m width and 3.5-4 mm thickness. Currently the enterprise employs about 30 people, producing up to 3000 square meters of coverage per shift. With the growth in sales we will increase production volumes.

The company has own production facilities, high-tech equipment and modern technologies that allows high-quality, reliable and competitive produce. The first few months of work have shown that the price output produced in the country is 30-40% cheaper than imported building materials.

The enterprise also launched manufacturing waterproofing materials, roofing replacements, started production of plastic bathtubs of marble chips and polymer resins.

For ten years of participation in this exhibition, we have found many new partners. Our products are widely distributed in the Central Asian region through this exhibition. We are cooperating with Uzbekistan from the first days of its independence. And in 1999, we opened the office of our company here. Today, we are working closely with major companies in Uzbekistan, such as the Navoi and Olmaliq metal plants. We would like this exhibition help us increase the list of partners.