Azernews.Az

By Aynur Jafarova

South Korean Daewoo International Corporation will invest $22 million to expand production capacities of Uzbekistan's two textile enterprises.

The relevant Memorandum of Understanding (MoU) on expansion and modernization of production capacities of the Daewoo Textile Fergana and Daewoo Textile Bukhara was signed between Uzbekengilsanoat State Joint Stock Company and Daewoo International Corporation.

Daewoo Textile Fergana and Daewoo Textile Bukhara will invest $12 million from their own resources in 2014-2015 to expand their spinning capacities by 4,000 tons. The companies will invest another $10 million to modernize and expand their capacities in 2016-2017.

Some $3 million were invested in spinning production in Fergana and Bukhara to purchase new spinning equipment for improving the quality and volume of produced goods.

In 2013, Daewoo Textile Fergana produced goods for $107 million and Daewoo Textile Bukhara - $44 million.

The companies plan to increase their production volume to $170 million by 2016 and to $300 million by 2020.

Located in the south of Fergana valley in the Eastern Uzbekistan, Daewoo Textile Fergana is specialized in textile production, in particular cotton fabric and yarn.

The company was founded in 1996 by Daewoo International Corporation which invested about $100 million in development of textile production.

Launched by Daewoo International Corporation in Bukhara in 2008, Daewoo Textile Bukhara is a leading company in textile field. Yarn produced in this company is exported to many countries of the world.