Uzbekistan launches major textile complex construction
LT Textile Cooperatief UA, a Dutch textile firm, started
constructing a large textile complex in Kashkadarya region of
Uzbekistan, a representative of the Uzbekyengilsanoat State Joint
Stock Company told Trend.
The company unites the country's enterprises of light industry.
The Ministry of Foreign Economic Relations, Investments and Trade
of Uzbekistan and LT Textile Cooperatief signed an investment
agreement in October 2014.
The Dutch company will invest at least $55 million in the textile
enterprise in 2015-2016 in accordance with this agreement,
including $17 million of its own funds, $38 million from foreign
banks.
The agreement envisaging the organization of the textile production
with the capacity of processing 20,000 metric tons of cotton fiber
by producing 15,000 metric tons of cotton and mixed yarn per year,
was approved by the government of Uzbekistan.
Under the agreement, the enterprise should be provided with modern
high-tech and energy-efficient equipment. Moreover, it is also
planned to create a specialized service center for the maintenance
of the textile equipment.
It is planned to commission the complex in November 2016, while the
complex itself is expected to start operating in design capacity in
Q1 of 2017.
Moreover, it is planned to export 80 percent of the enterprise’s
products.
The Department of Justice of Uzbekistan’s Kashkadarya province
registered the foreign enterprise LT Textile International with $1
million worth authorized capital in late January 2015.
A land area of 30 hectares has been allotted for the construction
of textile complex, as well as a number of privileges and
preferences has been granted: in particular, until 2022, the
enterprise is exempt from customs duties on technological
equipment, spare parts and accessories, imported within the
framework of implementation of this project.
It was previously reported that Uzbekistan until 2016 plans to
bring domestic processing of cotton fiber up to 500,000 metric
tons, or about 50 percent of the cotton fiber produced.
Currently, about 300 Uzbek textile enterprises process about 40
percent of cotton fiber. The Uzbek textile is supplied to 40
countries.
Uzbekistan is the sixth producer and third largest exporter of
cotton fiber in the world.
Annually, in average 3.5-3.7 million metric tons of raw cotton is
harvested and 1.2 million metric tons of cotton fiber is produced
in the republic.
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