GENERAL

CIET 2024: International Conference and Exhibition “Construction, Industry, Energy of Turkmenistan” – Key Discussions of the Plenary Session

  • Turkmenistan is increasing production capacities: cement, ceramics, electricity
  • Industry is the engine of Turkmenistan’s economy
  • Intellectualization of production and transition to a circular economy are Turkmenistan’s priorities
  • Çalık Holding realizes a wide range of projects in Turkmenistan
  • Rönesans Holding: Turkmenistan’s reliable partner in the energy sector and beyond
  • Daewoo E&C sees great potential in cooperation with Turkmenistan
  • Mitsubishi: from textiles to carbon technologies in Turkmenistan
  • Gertner Group offers innovative solutions for the Turkmen industry
  • LIAMOL TRADING GmbH: from agricultural machinery to road construction – a wide range of services for Turkmenistan

On 3 November 2024, the International Conference and Exhibition “Construction, Industry, Energy of Turkmenistan” (CIET 2024) started in Ashgabat.

The plenary session considered new trends in the construction, industry and energy sectors of Turkmenistan and prospects for mutually beneficial cooperation.

The session was moderated by Ambassador John MacGregor, Head of the OSCE Center in Ashgabat. ” I have lived and worked in this part of the world in Azerbaijan and Central Asia for 17 years during that time, I had personally observed the amazing progress made here in Turkmenistan. And by that I mean, in all facets of industry government society. <…> Clearly Turkmenistan has come a long way as an independent state in the last 33 years. But the pace of progress to my eye seems to have increased dramatically in the last 10 to 15 years”, he said.

“Clearly this work as it required investment and expertise from major International corporations, and cooperation with regional states, including from the OSCE area. This is has not been an easy task. While credit must go to the national leadership of Turkmenistan and to all, the many persons across government and society who have created the space and the opportunities to make this happen”, MacGregor stressed.

The plenary session of the conference discussed the strategic advantages and investment opportunities of Turkmenistan, its role in the sustainable development of the region and strategies aimed at attracting foreign investment. New investment opportunities of the country and new investment projects in industry, construction and energy, including infrastructure projects of international importance, were presented.

Here is a summary of speakers’ presentations:

Turkmenistan is increasing production capacities: cement, ceramics, electricity

Baymyrat Annamammedov, Deputy Chairman of the Cabinet of Ministers of Turkmenistan, highlighted in his speech the role of industrial and construction production as one of the largest sectors of the economy.

Industrial enterprises under the leadership of the Ministry of Industry and Construction Production of Turkmenistan carry out large-scale construction in all regions of the country. In March and May 2024, the second stages of the Ministry’s cement plants “Lebap” and “Baherden” were launched, each with capacity of 1 million tons of cement per year. These new, powerful enterprises are equipped with the most advanced equipment from leading world manufacturers, allowing to produce high-quality cement grades “PC-400”, “PC-500”, “PC-600”, which are in great demand in domestic and foreign markets, as well as sulfate-resistant Portland cement.

In addition, in the Baherden district of the Akhal province, it is planned to complete the construction of the enterprise for the production of ceramic products “Baherden”, which is designed to produce 3.3 million square meters of ceramic facing plates and 120 thousand units of porcelain products per year.

The electric power industry plays an important role in the development of the national economy. A circular energy system has been created in the country, high-voltage overhead power transmission lines and substations in the Mary-Akhal, Akhal-Balkan and Balkan-Dashoguz directions have been put into operation. Currently, a combined gas turbine power plant with a capacity of 1,574 megawatts is being built in the Turkmenbashi district of the Balkan province. In order to increase the volume and routes of Turkmen energy exports abroad, the Turkmenistan-Afghanistan-Pakistan electric pipeline project is being successfully implemented.

The country also pays great attention to the production of renewable energy sources. The construction of a multifunctional solar and wind power plant in the Balkan province is currently being completed.

In the chemical industry: the chemical products produced in Turkmenistan are intended not only for domestic consumers, but are also exported in growing numbers to foreign countries.

The State Agency for Highway Construction Management ensures the construction of local and national roads in the country in accordance with international standards. A striking example of this is the construction of600-km long Ashgabat-Turkmenabad high-speed highway. The Ashgabat-Tejen segment was inaugurated in 2021, and Tejen–Mary was launched in 2024. Currently, work is also continuing on the construction of a high-speed highway on the Mary-Turkmenabad section.

Industry is the engine of Turkmenistan’s economy

Toiguly Nurov, Minister of Industry and Construction Production of Turkmenistan, spoke about the large industrial facilities under the Ministry’s administration. These are industrial facilities of the Ovadan-Depe industrial zone of the Akhal province, the state enterprise “Türkmendemirönümleri” (iron products), the closed joint stock company “Türkmenmermer” (Turkmen marble), one of the largest enterprises in Central Asia “Türkmen aýna önümleri” (glass products), a plant for the production of aerated concrete, as well as enterprises for the production of reinforced concrete products located in Ashgabat and provinces, a plant for the production of expanded clay in Yashlyk, the state enterprise “Nebitmaş”, a polymer products enterprise and others. These enterprises produce metal products, decorative materials for construction, glass products, aerated concrete blocks, non-metallic building materials, reinforced concrete products, expanded clay, engineering and polymer products.

The speaker drew attention to the expansion of infrastructure cement production. The Ministry’s cement plants in Baherden, Balkan and Lebap, as well as the second stages of the Baherden and Lebap cement plants, are now producing Portland cement of various grades and sulfate-resistant cement that fully meets international standards. In addition, these plants produce grouting cement necessary for the oil and gas industry, as well as sulfate-resistant cement for the construction of hydraulic structures.

Intellectualization of production and transition to a circular economy are Turkmenistan’s priorities

Serdar Joraev, Minister of Finance and Economy of Turkmenistan, said that the country’s economic growth rates for 2023 and 9 months of this year are maintained at a consistently high level of 6.3%.

He listed the main tasks for the development of industry, energy and construction:

  • Comprehensive intellectualization of production;
  • Transition to innovative development;
  • Creating a sustainable basis for further diversification of priority industries;
  • Introduction of digital and green technologies;
  • Maintaining an objectively determined process of continuing professional education.

The Minister focused on the issues of maintaining environmental balance in economic development. Taking into account the growth of new environmental risks, new approaches are being developed in the development of the real economy to build industries with a closed cycle and a saving effect of consumption (circular economy), ultimately achieving zero waste emissions.

Special attention is paid to energy efficiency and the use of renewable energy sources. The development of renewable energy sources is the key trend of Turkmenistan’s industrial policy in the medium term.

The electric power industry occupies an important place in the industrial development of the state. Due to the creation of a unified gas transportation and electric power systems, Turkmenistan fully covers the needs of the economy with its own natural gas and electricity. The country has also implemented full gasification and electrification of cities and towns, the minister stressed.

Çalık Holding realizes a wide range of projects in Turkmenistan

Ahmet Calik, Chairman of the Board of Directors of the Çalık Holding Group of Companies, stressed that his company implemented many projects in Turkmenistan in the construction, industrial and energy sectors, in the field of healthcare, textile and chemical industries. In addition, the Turkish holding company is an investor in an important international power line TAP project.

The company continues to build a combined-cycle power plant with a capacity of 1,574 megawatts.

Calik highly appreciated Turkmenistan’s contribution to ensuring its own regional energy security. The electric power industry of Turkmenistan, which has rich energy resources, is developing rapidly. The generation capacity achieved to date, in addition to fully meeting domestic needs, provides the opportunity to export to foreign countries. This thoughtful energy policy makes a great contribution to the stable development of the economy of Turkmenistan and the countries of the region, to further increase the energy security of the region, the businessman said.

Rönesans Holding: Turkmenistan’s reliable partner in the energy sector and beyond

Erman Ilicak, Chairman of the Executive Board of Rönesans Holding, noted that Rönesans Holding has implemented many projects in Turkmenistan, in the energy sector, in the field of natural gas, modernization of existing plants and enterprises, including in cooperation with other foreign partners.

In addition, the company is exploring other areas of partnership, for example, socio-economic development and social development programs in Turkmenistan, and contributes to the training of local personnel.

Rönesans Holding primarily associates the success of its activities in Turkmenistan with mutually beneficial cooperation and trust. “All our projects are carried out only at the high level and on the principle of mutual benefit,” said Ilicak, stressing his company’s willingness to participate in future projects, including in industry, construction and energy.

Daewoo E&C sees great potential in cooperation with Turkmenistan

Jung Won-Ju, Chairman, Daewoo Engineering & Construction Co., Ltd, sees great potential in cooperation with Turkmenistan. Jung Won-ju noted that Turkmenistan has rich energy resources and a dynamically developing construction industry. Special attention was paid to the success of the Arkadag Smart City, which won prestigious awards at the World Smart City Expo in South Korea.

According to the speaker, this project has increased the international status of Turkmenistan and attracted the attention of investors to the country’s construction, chemical and energy industries.

Daewoo E&C, as a leading South Korean construction company, has 50 years of experience and is ready to actively participate in the implementation of major projects in Turkmenistan. The company already has a successful experience of cooperation with Turkmenistan, as evidenced by the signing of a memorandum of understanding with the State Concern Turkmenhimiya in November 2022 and the opening of a branch in Ashgabat. Jung Won-ju also announced the awarding of a contract for the construction of a mineral fertilizer plant in Turkmenabat and expressed the company’s readiness for further cooperation.

Mitsubishi: from textiles to carbon technologies in Turkmenistan

Tanaka Masakazu, Business Manager of Mitsubishi Heavy Industries Ltd. and Yasunori Sakamato, Regional Representative for Türkiye, Central Asia and Caucasus, Mitsubishi Corporation held a joint presentation and shared their experience of successful partnership with Turkmenistan. The first joint project of Mitsubishi and Turkmenistan was the construction of a textile complex in Ashgabat in the 90s. Then the company participated in the construction of a cement plant and another textile factory. In 2011, a Mitsubishi representative office was opened in Ashgabat, which indicates the company’s serious intentions to strengthen its presence in the Turkmen market.

One of the most significant projects was the construction of an ammonia and urea production plant in Garabogaz together with the Turkish company Gap Insaat. MHI was responsible for the design, supply of equipment and start-up of the plant. The project was successfully completed in 2019 and has been demonstrating stable performance since then.

Special attention in the presentation was paid to the KM CDR Process carbon capture technology, developed by MHI in collaboration with Kansai Electric Power Company. This technology allows to capture up to 98% of carbon dioxide from industrial emissions. MHI has more than 30 years of experience in this field and is a global leader in the supply of carbon capture equipment. MHI representatives expressed confidence in the further development of cooperation with Turkmenistan. The company is ready to offer its technologies and experience for the implementation of new projects in the field of energy and chemical industry.

Gertner Group offers innovative solutions for the Turkmen industry

Alexander Matzinger, CEO of the Austrian company Gertner Group, expressed admiration for the development of Turkmenistan, especially noting modern cities such as Arkadag and the country’s largest seaport in Turkmenbashi.

Matzinger emphasized the successful cooperation of his company with Turkmenistan. Gertner Group has already implemented a number of projects for state-owned enterprises, including the supply of key components for the modernization of the main conveyor of the Karabogaz Carbamide plant, as well as for the supply of critical chemicals for production. Gertner Group has presented two new proposals aimed at further development of Turkmenistan’s industry.

Gertner Group proposes to establish a joint venture with the world’s leading RemaTipTop company to service conveyor systems widely used in industrial enterprises of Turkmenistan. This will ensure the smooth operation of the equipment and increase its efficiency.

The company proposes to introduce modern technologies for the production of fiber cement slabs in Turkmenistan. This material has a number of advantages: lightness, strength, resistance to external factors, environmental friendliness and the ability to simulate natural materials such as marble. The proposed material is made from cement, and therefore its production can be adjusted locally.

LIAMOL TRADING GmbH: from agricultural machinery to road construction – a wide range of services for Turkmenistan

Colin Nelson, Regional Director of LIAMOL TRADING GmbH, based in Vienna, said that the company continues to strengthen its cooperation with Turkmenistan. LIAMOL TRADING GmbH represents such well-known brands as John Deere, JCB, Damen, Wirtgen Group and Lindsay in Turkmenistan, supplying modern agricultural and road construction equipment to the market. The company operates through the “AGRi Machinery Service” joint venture and actively participates in educational projects aimed at improving the skills of Turkmen specialists.

In recent years, the company has implemented a number of major projects in partnership with the Ministries of Agriculture, the Agency for Highway Construction Management, and the Water Management Committee of Turkmenistan. In particular, more than 1,000 cotton harvesters, 900 tractors and 900 grain harvesters were delivered, a significant number of road construction equipment, including rollers and asphalt pavers (2024), in 2023, supplies of diggers for the State Committee of Water Management were carried out.

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