UK Export Finance (UKEF) has guaranteed a €12.6m loan to Uzbekistan’s Almalyk Mining and Metallurgical Complex to refinance its purchase of fully automated machinery from the Scottish multinational Weir.
This loan, provided by an international bank, will support Weir’s export opportunities to one of central Asia’s largest copper production facilities. It is UKEF’s first ever deal in Uzbekistan.
The CEO of UKEF, Tim Reid, said: “UK businesses are more interested than ever in bringing their goods and services to this vibrant economy – and UKEF can help buyers in Uzbekistan make the most of this opportunity.”
Non-ferrous metals, metal ore and scrap account for around 90% of the UK’s imports from Uzbekistan, according to statistics from the UK’s Department of Business and Trade. Copper is crucial in construction and various energy transition technologies such as solar panels and electric vehicles, with demand projected to increase by one million tonnes each year until 2035.
UKEF is backing the deal to boost machinery exports worth millions of pounds. The total trade between the UK and Uzbekistan reached £381m in 2023, with specialised machinery ranking as the fourth most-traded commodity overall.
The support from UKEF, the UK’s export credit agency, is crucial for sustaining future production at Almalyk by ensuring ongoing access to capital from a major supplier.
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UKEF has expressed its ongoing commitment to supporting projects in Uzbekistan since Reid visited the country last year to explore opportunities for promoting trade and investment as the country diversifies its economy.
In 2024, UKEF appointed Sevara Madgazieva as the country head for Uzbekistan. She is responsible for assisting buyers in Uzbekistan interested in implementing projects using UK products, with a particular focus on clean and sustainable technologies.
Madgazieva said: “This is the first of many opportunities for UK Export Finance to strengthen the trading relationship between the UK and Uzbekistan. British suppliers have a lot to contribute as Uzbekistan continues to diversify its economy, which is why UKEF has [up to £4bn] available to support projects throughout central Asia.”
In June, Uzbekistan’s Almalyk Mining and Metals Combine also announced plans to undertake a $15bn expansion programme to boost copper cathode production to 400,000 tonnes per annum (tpa) by 2030, up from the current 148,000tpa.
