UCG נעמט צענטער סטאַגע אין די ינפראַסטראַקטשער בום פון סענטראַל אזיע

Over the past 50 years, Europe has successfully reduced its greenhouse gas emissions by 30%. As Europe's interest in collaborating with eco-friendly manufacturers continues to grow, Central Asian democracies are now gaining attention as potential players in this sustainable trend.

Uzbekistan is shedding the remnants of its Soviet-style governance. Alongside Kazakhstan and Kyrgyzstan, these three nations are emerging as prominent drivers of capitalist development and innovation in Central Asia. This region is quickly establishing itself as a hub for democratic capitalism, allowing companies in the area to embrace newfound freedoms and access international capital markets.

Central Asian Construction Firms Embrace Green Technologies to Target Global Markets

The construction industry in Central Asia is leading the way in adopting sustainable practices, with companies like AKFA Group, Heidelberg Cement Kazakhstan, BI Group, and United Cement Group taking aggressive steps to implement green technologies. By aligning with stringent environmental requirements established by the European Union and the United States, the region is positioning itself as a potential exporter to these markets. Forbes specifically highlighted United Cement Group for its recent media coverage and positive international credit ratings from S&P and Fitch.

Headquartered in Tashkent and primarily operating in Uzbekistan, United Cement Group is adhering to the CO2 emission regulations set by the European Cement Association. This commitment makes its cement output highly desirable for European buyers, despite the immediate focus on Central Asia and the Middle East.

“At the moment, our factories do not export to other countries and to Europe. This is due to the fact, that cement exports are limited to a geographical area of 500 kilometers around the plant. But as one of the directors of UCG I would like the company to develop further, including through an IPO” said Andreas Kern, Member of the Board of Directors, United Cement Group.

UCG's Competitive Advantage: Leading the Way in Green Innovations

According to McKinsey's research, the cement industry ranks among the top contributors to global CO2 emissions, accounting for approximately six to seven percent. The outdated design of kilns has been a significant factor. However, transitioning from fossil-based fuels to biomass alternatives and effectively controlling emissions is an extensive and costly endeavor. McKinsey estimates that European manufacturers may not achieve these changes until around 2035. By 2050, the research predicts that environmentally-friendly concrete could cost up to 45 percent more due to the required modifications in kiln manufacturing.

UCG has made significant progress in modernizing its kilns, positioning itself at the forefront of the industry. One major advancement includes the recovery of tertiary air from the clinker cooler, which is then used in the calciner for drying and partially reducing carbon content in the raw materials. Additionally, UCG is implementing other important innovations throughout its production process, despite the associated costs. These initiatives are all aimed at enhancing the environmental-friendliness of its output.

אַדווערטייזמאַנט

By proactively embarking on a technological upgrade ahead of time, UCG has gained a crucial advantage. The company is already ahead of the curve in implementing emission control technologies, kiln upgrades, fuel diversification programs, and recycling initiatives.

“Our group demonstrates high business growth dynamics while focusing on sustainable development, paying special attention to social issues, ecology and energy efficiency. UCG is carrying out a major modernization of plants to transform them into modern production facilities that are able to meet the needs of Central Asian economic sectors in cement and become key players in the international market,” said Kern.

UCG Expands Green Cement Production and Faces Competition from Chinese Rivals

UCG, the proud owner of cement plants scattered across various regions in Uzbekistan including Navoi, Fergana, and Tashkent, as well as neighboring Kyrgyzstan, is determined to transform its product into a green alternative at a fraction of the cost. According to McKinsey's research, producing a ton of green cement, UCG's ultimate goal, in Europe by 2050 could cost anywhere between 1,250 to 2,500 euros more than the current price. This means UCG has the potential to capitalize on this increase by leveraging its low overhead costs and capturing market share now.

As UCG ventures into international markets, it finds itself going head-to-head with formidable competitors, particularly Chinese companies that currently hold a 45% market share of cement imports in the EU region, as stated by TrendEconomy's research.

Nevertheless, UCG is prepared for the challenge ahead. The company has made not only technological preparations but also organizational adjustments. As one of the fastest-growing industrial companies in Central Asia, UCG operates in accordance with international standards. It boasts international ratings, including debt ratings from S&P and Fitch, and undergoes auditing by leading consulting firms of the Big Four, with legal support from Baker McKenzie.

Forbes' information UCG can consider becoming open to shareholders and management companies. The EMEIA region has seen a significant number of major IPOs, and privatization has driven MENA issues up by 115% in proceeds when the global IPO market was stagnant, according to the EY Global IPO Trends 2022 report.

Capitalising on the green trend could lead UCG to go public. The company's employees and executives mourn the disappearance of the Aral Sea, once the fourth largest sea in the world but now almost entirely dry. UCG is interested in preserving the environmental well-being of the region.

“We continue to further reduce the amount of emissions into the environment. We are committed to improving the ecology and sustainability of Central Asia as a region and becoming a market leader. Our goal is to be a good corporate citizen,” said Andreas Kern.

שער דעם אַרטיקל: