Second stage of textile production to be launched in Uzbekistan

Business Materials 2 March 2013 14:58 (UTC +04:00)

Uzbekistan, Tashkent, February 27 /Trend D. Azizov/

Singapore company Indorama Industry Pte ltd is going to launch the second phase of textile production with the cost of 31 million dollars in Fergana province of Uzbekistan until the end of 2013, a source close to the project told Trend.

First phase of textile production costing about $30 million was put into operation in September 2011. Equipment supply was exercised by the Swiss company "Rieter".

The capacity of the manufacture created on the basis of Kokand Textile Combine constitutes 10 thousand tons per year.

The production capacity will increase by five thousand tons - to 15 thousand tons of cotton fiber per year after the second phase is put into operation.

The project will be financed by direct investments of the Singapore company and credit resources of foreign banks attracted on the basis of project finance principles.

As announced before, State property Committee of Uzbekistan sold the property of the state-owned enterprise "Kokand Textile Combine" at zero redemption value to the joint enterprise Indorama Kokand Textile created by Indorama Industry Pte ltd. and the National Bank for Foreign Economic Activity of Uzbekistan.

The joint enterprise is established with charter capital of 20 million dollars. The share of Indorama constitutes 75 percent, the share of the National Bank FEA - 25 percent.

The charter fund will be formed during 3 years according to the constituent documents.