The project was announced following a meeting on December 24 between Fergana regional governor Khayrullo Bozorov and a delegation from Shandong Weida. The governor expressed support for the initiative, highlighting the growing demand for construction materials in domestic and international markets.

In its first phase, the fully automated plant will focus on gas block production, with plans to expand into adhesives and partition panels in the future. The project is expected to create over 100 jobs, contributing to the region’s economic development.

This investment aligns with Uzbekistan’s broader economic goals. Earlier this month, President Shavkat Mirziyoyev reviewed socio-economic development plans for the Fergana region. Local authorities have secured agreements with Chinese investors worth $1 billion and Korean investors worth $240 million. These projects aim to establish industrial zones spanning 1,210 hectares, further boosting the region's industrial capacity.