Prime Minister N.Uchral visited the Khovd Eco Cement plant and the Shine Khovd Industrial and Technology Park during his working trip to Khovd Province on October 17, pledging to address challenges facing both projects promptly. Launched in 2022, Khovd Eco Cement employs more than 350 people and has indirectly generated around 3,000 jobs by purchasing goods and services from local herders, farmers and small and medium-sized enterprises.
With an annual production capacity of 400,000 tonnes, the plant supplies cement to the five western provinces, as well as Bayankhongor, Uvurkhangai and Ulaanbaatar. It began exporting cement to Russia this year. Plant representatives briefed the PM on plans to export 100,000 tonnes annually and requested government support to expand into Eurasian markets.
Khovd Eco Cement has become Mongolia’s first cement plant powered by renewable energy. It has established an eight-megawatt solar power station and installed solar panels, aiming to meet 50-60 percent of its annual electricity needs through renewable sources. The initiative is expected to ease pressure on the western region’s energy supply. The plant also plans to install a battery energy storage system to reduce energy costs and expand building materials production. Its management highlighted the need for relevant government agencies to address the integration of surplus electricity into the central power grid. The PM expressed his support for businesses that create economic value and directed relevant officials to promptly address the plant’s challenges in accordance with applicable regulations.
During the same visit, the premier toured the site of the Shine Khovd Industrial and Technology Park, whose construction is expected to be completed in 2027, creating 2,200 new jobs. Established in Jargalant soum, the park is intended to improve the primary processing of livestock-derived raw materials in western Mongolia and increase the value of products through further processing. Construction began in 2022, and eight types of infrastructure including roads, electricity, clean and wastewater networks, a wastewater treatment facility, telecommunications infrastructure, a leather-processing wastewater treatment facility and a steam heating plant, are now 95 percent complete. A total of 60.1 billion MNT has been spent on these works, with the government working to fully secure infrastructure funding.
More than 100 businesses have expressed interest in establishing factories at the park. Its representatives said they plan to expand the site in the future and develop it into a heavy industrial zone. Park Executive Director S.Batsaikhan told the PM that concessional loans were needed to support wastewater connections and businesses planning to establish factories at the park. He also highlighted the need for a business incubator and a technology transfer center.
Prime Minister N.Uchral pledged legal, financial and investment support, noting that the government had begun work to improve and update the Law on the Legal Status of Industrial and Technology Parks. The park is being developed in Khovd in line with Mongolia’s regional development policy, given the province’s role as a key center for the western region and its access to markets through two border crossings.
The government is also pursuing policies and investment support to increase the processing of livestock-derived raw materials, expand finished-product manufacturing and boost exports. Under the “White Gold” initiative, it aims to increase the share of fully processed cashmere from 20 to 40 percent, wool processing from 25 to 55 percent, and deep processing of hides and skins from 30 to 50 percent.
