Singapore company launches textile production in Uzbekistan

Business Materials 6 September 2011 22:10

Uzbekistan, Tashkent, Sept. 6 /Trend, D.Azizov/

Singapore Indorama Industry Pte ltd has launched a textile production on the base of Kokand textile plant in the Ferghana region in Uzbekistan worth about $30 million, Uzbeklegprom State JSC reported.

According to Uzbeklegprom, production capacity for processing cotton is 10,000 tons per year.

Indorama and National Bank for Foreign Economic Activity of Uzbekistan created joint venture Indorama Kokand Textail with the charter capital of $20 million. The share of Singaporean side is 75% and NBU - 25%. The statutory fund will be established within three years.

Singapore-based company committed to invest over four years in the development of production of at least $55 million, of which 15 million - company's own funds, $ 40 million - loans of foreign banks, attracted by the principles of project funding. The enterprise is scheduled to be opened in 2013.

The Uzbek-Singapore joint venture "Indorama Kokand Textile" for five years is exempted from payment of customs duties for imported production equipment, tooling, spare parts, components and construction materials. According to the government decision, the released funds should be used in the construction of textile enterprises.

The design capacity of the textile industry by 2013 will amount to 16-20,000 tons of processed cotton per year, which will enable to annually export products worth $26-32 million.