Tajikistan: China Swoops in For Fertilizer Plant
The game of pass the parcel with one of Tajikistan’s rare industrial success stories has now led to a promising fertilizer plant being taken over by Chinese investors.
The lower house of parliament on December 14 ratified a deal between Tajikistan and China for Henan Zhong-Ya holding group to assume control of OAO Azot in a deal that will require the company to invest $360 million over the coming three years.
All in all, the deal is a sweet one for Henan Zhong-Ya. Azot will enjoy a tax holiday for a six-year period as it gradually ramps up production. The plant specializing in the production of carbamide, or urea, an organic compound used in fertilizer.
The plant has been standing idle since it was nationalized at the expense of Ukrainian tycoon Dmytro Firtash in 2014.
For the first 10 years of resumed operations, the plant will be 51 percent owned by the Chinese, while the remainder will be held by the Tajik government. The general director of the company will be Chinese.
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