Singapore-based Indorama to invest $20 million in textile project in Uzbekistan
Uzbekistan, Tashkent, June 5 / Trend D.Azizov /
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 on Wednesday.
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.
As previously reported, in June 2011, the State Property Committee of Uzbekistan implemented at zero cost, the project for property complex of the Kokand Textile Mill state enterprise for the joint venture Indorama Kokand Textail, created by the Singapore-based company and the National Bank for Foreign Economic Activity of Uzbekistan.
The joint venture was established with a registered capital of $20 million, where Indorama has a 75 percent stake, the National Bank for Foreign Economic Activity - a 25 percent stake.
The government of Uzbekistan provided the join venture with customs exemptions on imported technological equipment, tooling, spare parts, accessories and building materials until 2016.
According to the program of development of the industry, Uzbeklegprom Public Joint Stock Company implemented 106 investment projects worth $1.678 billion in 2011-2015.
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.
The official exchange rate on June 5 is 2084.95 soum / $ 1.