BAKU, Azerbaijan, November 11. Italian engineering company Gamma Meccanica, Uzbekistan’s ECO BASALT and the administration of Namangan Region have signed a trilateral memorandum of understanding outlining a €104 million industrial development program in Uzbekistan’s Chust district, focusing on mineral wool production, insulation materials and plastics recycling, Gamma Meccanica told Trend.
The agreement was signed following a visit by a Namangan Region delegation led by Governor Shavkatjon Abdurazakov to Gamma Meccanica’s manufacturing facilities in Bibbiano, Italy, on October 30, the Italian company said.
During the visit, the delegation met with Gamma Meccanica President Andrea Burini to discuss industrial development, technological modernization, and opportunities for long-term cooperation between Italian and Uzbek businesses.
The program envisages modernization and expansion of existing mineral wool production facilities, including the installation of additional equipment to manufacture mineral wool substrates for hydroponic agriculture.
Another key component involves establishing a new production facility for insulation materials and sandwich panels intended for industrial construction and building insulation.
Additionally, the development program includes a dedicated facility for manufacturing environmentally friendly stone wool-based substrates for greenhouse operations and hydroponic cultivation.
Further phases could involve the production of extruded polystyrene (XPS) insulation boards and the introduction of technologies for recycling plastic waste, including agricultural plastic films.
The overall program is scheduled to be implemented in stages through 2030.
Investment and technological cooperation
The memorandum outlines an estimated investment program of €104 million. The amount covers construction of production facilities and supporting infrastructure, raw material procurement, technological equipment, installation, and other expenses associated with launching the planned facilities.
Gamma Meccanica will contribute its engineering and industrial expertise, drawing on 50 years of experience in designing, manufacturing and integrating equipment for mineral wool production and processing.
Depending on individual project requirements and commercial agreements, the cooperation may include equipment supplies, engineering services, technical assistance, installation supervision, commissioning support and personnel training.
Moreover, the parties identified plastics recycling, resource efficiency and environmentally sustainable industrial technologies as potential areas for further cooperation.
The memorandum establishes a general framework for collaboration, while technical specifications, financing arrangements, individual contract values and implementation schedules will be determined through separate agreements and relevant approval procedures.
Further details on production capacities and project timelines are expected to be announced as individual project plans are finalized.
The initiative marks another step in expanding industrial and technological cooperation between Uzbekistan and Italy, with Namangan Region seeking to attract foreign expertise and develop higher-value manufacturing capabilities.
