Kvarts financial crisis: Government steps in to stabilize Uzbekistan’s largest glass factory

The State Asset Management Agency has provided an explanation regarding the return of state-owned shares in "Kvarts" JSC to its control.

According to the agency, in February 2023, 89.78% of "Kvarts" shares were sold to "Kuvasoycement" JSC for 265 billion UZS, under a three-year installment plan. However, the company’s activities were monitored, and "Kuvasoycement" was repeatedly warned about payment delays.

Due to financial difficulties, the buyer requested the cancellation of the sale contract, and on February 14, 2025, both parties agreed to annul the agreement. Subsequently, the supervisory board of "Kvarts" was restructured, with SAMA representatives included.

The agency clarified that the return of shares was solely due to the incomplete execution of the contract, within the framework of contractual-legal relations. It does not constitute a revision of privatization results or nationalization.

Financial recovery measures underway

A roadmap for the financial stabilization of "Kvarts" has been approved, and relevant measures are being implemented.

Founded in 1975, "Kvarts" is Central Asia’s largest manufacturer of glass containers, automotive glass, and other glass products. Before privatization, the company was profitable, earning 54.7 billion UZS in 2021 and 64.3 billion UZS in 2022. However, after privatization in February 2023, it ended the year with a loss of 21.7 billion UZS, followed by 142 billion UZS in losses in 2024.

In 2024, "Kvarts" took an $8 million loan from Asaka Bank, and in 2025, it borrowed 60 billion UZS.

The buyer, "Kuvasoycement" JSC, is part of the United Cement Group (UCG), a Cyprus-registered holding that also owns Kyzylkumcement, Bekabadcement, and Kuvasoycement in Uzbekistan, as well as Kant Cement Plant in Kyrgyzstan and Technolin.

Previously, reports surfaced that UCG's founder, Ulugbek Shodmonov, was arrested in the UAE in December 2024 and extradited to Uzbekistan.

As of April 1, 2025, the shareholder structure of "Kuvasoycement" includes:

• Raybird Limited – 30%
• Rayblock Limited – 30%
• Raycross Limited – 29%
• Ansher Finance LLP & Ansher Investments LLP – 1%
• Individual shareholders – 10%