February 12, 2018 the representatives of the Japan International Cooperation Agency (JICA) Naoko Nishikawa – project formulation advisor and Shokirjon Makhmadov - program officer have visited Sughd Free Economic Zone.
The goal of the visit was to study the current situation and the main trends in the development of the logistics industry in the region and FEZ’s the prospects for for participation in the process.
Mirzoyon Mirzomanon Mirzokalon - the Head of the International Department demonstrated the presentation of Sughd FEZ. During the meeting, the initiatives and projects of FEZ aimed at developing the logistics industry, including possible areas of mutually beneficial cooperation were discussed.
At the end of the meeting, it was decided to continue consultations and exchange of views on discussed issues.
February 9, 2018 a press conference had been organized in the Administration of Sughd Free Economic Zone for the representatives of local media.
The head of Administration Mr. Firdavs Olimzoda gave information on the activity results of FEZ in the last year and outlined the main directions in which the efforts in the coming year will be concentrated. A presentation featuring key figures and facts was demonstrated for a convenient and clear provision of information.
Analyzing the results of FEZ‘s activity for the last year Olimzoda F. noted the positive dynamics of development. (For details see results of the year)
In concluding his statement he offered to watch a short advertising video about the achievements of Sughd FEZ.
It should be noted that along with FEZ Sughd the directors of the State Agency for Employment of Population and the Centre of the Revival of Folk Crafts also spoke with media representatives.
Then journalists asked their interested questions.
At the end journalists visited the construction sites of new production facilities in the FEZ territory, which will be launched this year.
The total number of registered enterprises in Sughd FEZ by January 1 2018 is 24, 7 of them with foreign capital. In 2017 only 1 new subject with total amount of investment of 1 million US dollars was registered.
In 2017 the volume of production of Sughd FEZ subjects made 80,14 million TJS (growth rate 13,4%). The export of goods made 12,5 million TJS (growth rate 32,9%). 11 millions of this sum belong to aluminum profiles company – Tajprof. The products of the company had been exported to Kyrgyzstan, Uzbekistan, Kazakhstan, Afghanistan and Turkmenistan.
The average number of employees in the subjects of Sughd FEZ is 383 people. The average rate of their salaries is 1100 TJS.
One of the main totals of 2017 due to consideration of Sughd FEZ leaders was an expansion of production of existing subjects. Last year three subjects announced their new projects and extra investments. LLC “Dusti Amirkhon” will be engaged in manufacturing of ventilation air inlets and accessories from galvanized steel. OJSC “MMC(Mobile mechanized column) of Khujand” has begun construction of a plant for production of metal and plastic goods and LLC “Eskhata Sughd Savdo” will render hotel and health-improvement services.
One of the biggest investors of Sughd FEZ in 2017 was “Asiapolitex” company which is specialized in the production of polypropylene packs for everyday necessities and other needs. The investment sum of the company is 1 million US dollars. The company aimed to export its production to CIS. The other largest investor of the last year was OJSC “MMC of Khujand” which will produce toys, bikes, children vehicles, household goods, washing machines, fans, oil radiators and a lot of other plastic spare parts for cars and household appliances. The investment amount of the company is 2 million US dollars.
In 2017 Sughd FEZ has continued the improvement of its infrastructure. Administration of Sughd FEZ has modernized 1km of the water-supply pipeline. The construction of administrative and customs buildings are continued.
On January 4, 2018, Deputy Minister of Economic Development and Trade Mr. Tojiddin Jurazoda has officially visited Sughd free economic zone. This is his first visit since his appointment as a Deputy Minister in November 2017.
First Tojiddin Jurazoda has walked through the territory of FEZ, during which he got acquainted with the production process of large subjects. Further, in the Administration was held a meeting with the heads of subjects, Administration employees and representatives of the regional tax and customs departments. At the beginning of the meeting, Tojiddin Jurazoda noted that Sughd free economic zone is one of the developed free zones of Tajikistan, the products of which are in great demand both in domestic and foreign markets. He also noted that in his messages the Founder of peace and national unity - Leader of the nation, the President of the Republic of Tajikistan, His Excellency Emomali Rahmon always pays a special attention to the potential and development of free zones, which are one of the sources of attracting foreign capital to the economy of the republic. The Ministry of Economic Development and Trade, which is the authorized state body on free economic zones is always ready to move towards subjects, promote in their activities for the attraction of new investors with projects of an innovative production.
Then, heads of several subjects told to Deputy Minister about the existing problems and barriers in their activities, to which the Deputy Minister expressed his readiness to consider and take appropriate measures in time for their solution.
A memorable conclusion of the meeting was the solemn presentation of the Certificate to the new entity of Sughd free zone – Asiapolytex LLC. Tojiddin Jurazoda, personally presenting the certificate to representatives of the firm and wished them fruitful work and success in their future activities.
It should be noted that the new subject will be specialized in the production of polypropylene bags for industrial and household needs. At the moment the subject has begun the construction of a production complex on an area of 6 ha.
The ceremony award of the Republican contest "Brand of the Year-2017" under the name "Kullai Sharaf" was held on December 13, 2017 in Dushanbe. The event was organized by the Ministry of Economic Development and Trade with the aim of promoting the protection of trademark rights and service marks in the Republic of Tajikistan, identifying and presenting proven brands, as well as proposals for the promotion of firms for the use of branding.
“Promotion of the brand will allow enterprises to continue to develop their business and by increasing the competitiveness of their products, to contribute to the economic development of the country,” said Nematullo Hikmatullozoda in his speech.
The subjects of the Sughd FEZ Tajik-Turkish Joint Venture SILKCOAT BOYA LLC and Ravzana Plastic LLC were awarded by the "Brand of the Year - 2017" in the category of production enterprises of building materials.
Archa Mebel, LLC is a company, affiliated to the Fortuna Co., LLC and specialized in the production of specialized furniture, reported on the release dates of the first products. Construction and commissioning will end in the first half of 2018 and the company will begin production. In this regard, the company plans to attract investments from the European Bank for Reconstruction and Development.
The volume of production is planned to be increased to 7 million somoni per year. The enterprise plans to launch three product lines (products of metal structures, furniture parts using MDF, laminated chipboard and other tile materials, as well as soft furniture), which will use more than 30 modern machines and equipment. After the official launch of Archa Mebel, more than 40 specialists will be provided with a permanent place of work.
On November 6, the official delegation of the European Bank for Reconstruction and Development headed by First Vice President Philip Bennett visited the existing woodworking enterprise Archa and got acquainted with the progress of the construction of Archa Mebel, LLC.
In accordance with the preliminary negotiations with the EBRD, and following the results of this visit, a Memorandum of Cooperation was signed to finance the furniture production project.
The opportunities of Sughd FEZ were presented in Dangara, Khatlon region at the Plenary session of the International Economic Forum "Dangara - 2017" that was held on October 13, 2017.
The purpose of the forum was to present the economic potential and prospects for the development of the Khatlon region and free economic zones.
The event was organized by the Ministry of Economic Development and Trade of the Republic of Tajikistan with the support of the leadership of Khatlon region and development partners.
The forum was attended by First Deputy Prime Minister of the Republic of Tajikistan Davlatali Said, Minister of Economic Development and Trade of the Republic of Tajikistan Nematullo Hikmatullozoda, heads of several relevant ministries and departments, the executive authority of the Khatlon region and Dangara, representatives of international organizations and diplomatic corps, and foreign and domestic entrepreneurs.
Representatives of the Administration of Sughd FEZ made a presentation at the Plenary session of the forum about the opportunities provided by FEZs to industrial enterprises.
The Exhibition of Tajik manufacturing products were started in Tashkent within the framework of the Days of Tajikistan in the Republic of Uzbekistan on October, 11 in 2017.
Professionally and beautifully designed pavilions show the full potential of Sughd FEZ.
Pavilions of subjects introduce visitors to a diverse assortment of products produced in one of the successful FEZs of Tajikistan. The pavilion of the Administration of Sughd FEZ presented all the necessary information for interested audiences.
The Business Forum of Entrepreneurs of Tajikistan and Uzbekistan was held in the afternoon of the same day. The Head of the International Department of the Administration of the Sughd FEZ Mirzoen Mirzomanon delivered a presentation on the potential of the free economic zones of Tajikistan.
The first day of the exhibition has already yielded results. Within the framework of the business program, a contract for $2.000.000 was signed for the mutual supply of construction materials between Kedr Association, which includes two subjects of the Sughd FEZ - Archa and Silkoat Boya, - and UzTrade, LLC.
Note that the exhibition will continue until October 13.
Deputy Political-Economic Section Chief of the Embassy of the United States of America to the Republic of Tajikistan, Mr. Andrew Bury officially visited Sughd Free Economic Zone on October 2, 2017.
The presentation on activities of FEZ was shown to Mr. Bury. During the presentation, some questions of interest to guest were discussed. In particular, issues of interrelation and cooperation between free zones of Tajikistan, Sughd free zone’s taken actions to foster industrial and export potential, support of medium businesses, development of economic relations with neighboring countries, as well as current challenges and obstacles to develop Sughd FEZ.
The Head of the Administration of Sughd FEZ Mr. Firdavs Olimzoda thanked the guest for the visit, noting the contributions of USAID to the development of Sughd FEZ and expressed his intentions in the further strengthening of cooperation with the international organizations regulated by the US Embassy in Tajikistan. In discussing the directions of bilateral cooperation Mr. Olimzoda emphasized the need to improve the expertise of the staff of Sughd free zone through the provision of trainings and seminars in the field of management and investment promotion.
At the end of the meeting, Mr. Bury pointed out that he would maintain contacts with the Administration of Sughd FEZ and for sure he will discuss all issues of the meeting with his colleagues upon his return to Dushanbe.
Tajprof LLC that specializes in the production of aluminum profiles has expanded the catalog of its products. The reason for this initiative, as noted in the company, was the growing demand for the aluminum profile, as well as the opening prospects for entering the Russian market. The new aluminum system provides better heat and sound insulation, air tightness and eliminates blowing. It should be noted that the company not only saturates the domestic market with various profile systems, but also successfully sells its products to Kyrgyzstan where it has a partnership agreement with AalamStroy, and to Turkmenistan.
In addition, another subject plans active cooperation with Russian partners. Silcoat Boya LLC, specializing in the production of paint and varnish products, is aimed to supply its products to the southern regions of the Russian Federation. As representatives of the company noted, at the moment it is expected to receive a quality certificate corresponding to the Russian State Standard. The company periodically expands the catalog of its products and some products are produced on the basis of local raw materials. The company's brand stores are open in almost all regions of Tajikistan.
Until the end of this year, Archa LLC plans to launch its production. The company will produce modern furniture for educational, medical and administrative institutions.