A New Strategy for Metallurgy: Digitalization, Localization and Exports
Uzbekistan
Modernizing the steel industry has been identified as a key driver of Uzbekistan’s industrial growth. During a meeting chaired by President Shavkat Mirziyoyev, new priorities were set to expand the country’s raw material base, develop high-value manufacturing and accelerate the adoption of artificial intelligence across the sector.
The President noted that promising iron ore reserves are also expected in the Tashkent, Samarkand and Surkhandarya regions. Authorities were instructed to use AI-based analysis within one month to assess these areas and prepare a geological program aimed at increasing reserves of iron ore, manganese and ferrosilicon raw materials. Major domestic investors will also be involved in this work.
To ensure a stable supply of raw materials for more than 150 private metallurgical enterprises, a specialized centralized import company will be established with $200 million in funding. Imported raw materials will be sold exclusively through the commodity exchange.
Special emphasis was placed on expanding the production of high-value-added products. Localizing seamless pipe manufacturing will require $275 million in investment and is expected to generate $450 million in annual output, including $170 million in exports. Within three months, officials are to prepare investment projects covering seamless pipes, cold-rolled steel, metal 3D printing and high-precision machining.
A 90-hectare Uzbekistan Industrial Park of Environmental Technologies will also be established at the Bekabad Metallurgical Plant. It will include a ferrous metallurgy research center, an internationally accredited laboratory and new manufacturing facilities developed with private investors.
The meeting also highlighted the importance of digital transformation. AI solutions have already enabled Almalyk Mining and Metallurgical Combine to save 1,500 tonnes of diesel fuel worth 22 billion soums and reduce technological losses by 4 billion soums. According to estimates, AI implementation at the Bekabad Metallurgical Plant could save 25 billion soums annually by automatically detecting non-metallic impurities in scrap metal, while smart furnace sensors could reduce electricity costs by approximately $3 million each year. Enterprise managers were instructed to improve equipment efficiency by 20%, reduce energy consumption by 15%, and lower production costs through digital technologies and artificial intelligence.
To ensure a stable supply of raw materials for more than 150 private metallurgical enterprises, a specialized centralized import company will be established with $200 million in funding. Imported raw materials will be sold exclusively through the commodity exchange.
Special emphasis was placed on expanding the production of high-value-added products. Localizing seamless pipe manufacturing will require $275 million in investment and is expected to generate $450 million in annual output, including $170 million in exports. Within three months, officials are to prepare investment projects covering seamless pipes, cold-rolled steel, metal 3D printing and high-precision machining.
A 90-hectare Uzbekistan Industrial Park of Environmental Technologies will also be established at the Bekabad Metallurgical Plant. It will include a ferrous metallurgy research center, an internationally accredited laboratory and new manufacturing facilities developed with private investors.
The meeting also highlighted the importance of digital transformation. AI solutions have already enabled Almalyk Mining and Metallurgical Combine to save 1,500 tonnes of diesel fuel worth 22 billion soums and reduce technological losses by 4 billion soums. According to estimates, AI implementation at the Bekabad Metallurgical Plant could save 25 billion soums annually by automatically detecting non-metallic impurities in scrap metal, while smart furnace sensors could reduce electricity costs by approximately $3 million each year. Enterprise managers were instructed to improve equipment efficiency by 20%, reduce energy consumption by 15%, and lower production costs through digital technologies and artificial intelligence.
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