Singapore company to invest in textile project in Uzbekistan
Singapore-based Indorama Industry Pte ltd will invest $20 million in implementation of the third stage of textile production in the Ferghana region of Uzbekistan in 2014-2015, a source close to the project told Trend news agency on June 5.
As reported, the first stage of textile production for processing of cotton worth about $30 million was commissioned by Indorama in September 2011, while the second phase costing $31 million is scheduled to enter service in late 2013.
Following the commissioning of the second phase, the annual
capacity of the unit created on the basis of the Kokand Textile
Mill will increase by 5,000 tons to 15,000 tons of cotton.
Funding for the project is provided through direct investment of
the Singapore-based company and loans from foreign banks involved
in the project financing.
According to the source, an agreement has recently reached between the State Joint-Stock Company (SJC) Uzbeklegprom and the Singaporean company on further expansion of the project. The agreement for implementation of the third phase of the production of cotton yarn in Kokand will be signed in the near future.
Uzbekistan is the sixth world producer and the third largest exporter of cotton. An average of 3.5-3.7 million tons of raw cotton is harvested and 1-1.2 million tons of cotton fiber produced in the country annually. More than 75 percent of produced cotton fiber is exported.