Chinese company will invest $ 80 MN in Uzbekistan’s textile industry

Business Materials 27 November 2013 18:00 (UTC +04:00)
Chinese company Henan Sine will invest $ 80 million in the textile industry in the Andijan region (eastern Uzbekistan) in 2014-2016.

Tashkent, Uzbekistan, Nov. 27
By Demir Azizov - Trend:

Chinese company Henan Sine will invest $ 80 million in the textile industry in the Andijan region (eastern Uzbekistan) in 2014-2016, O'zbekyengilsanoat State Joint-Stock Company (Uzbek Light Industry) representative told Trend on Monday.

According to the source, the Chinese company acquired some assets of the company Bobur, which was declared bankrupt in early 2011.

According to the source, at the first stage, the Chinese investor will create capacity for cotton yarn production with a volume of 10,000 tons per year in 2014, while at the second stage, the production of cotton fabric with a capacity of 36 million running meters per year will be mastered in 2015-2016.

Up to 80 percent of output is expected to be exported.

Bobur was commissioned in 1982 and is one of the largest textile companies in the Ferghana region of Uzbekistan. The company's design capacity is 10,000 tons of cotton yarn and 50 million running meters of cotton fabric per year. The company was declared bankrupt in 2007 and put up for sale in October 2007.

Turkish Mimatas Tekstil acquired Bobur's assets with the announced investments worth $ 75 million in 2009. However, the company was declared bankrupt in early 2011 once again as the Turkish company failed to fulfill obligations on payments for the acquired assets and to implement the planned volume of investments.

Uzbekistan ranks sixth in terms of production in the world and third - in terms of export of cotton fiber. The country produces about 3.5 million tons of raw cotton and 1-1.2 million tons of cotton fiber.

Over 2,200 enterprises of light industry, including - more than 280 enterprises of light industry with a capacity of over 400,000 tons of cotton fiber have been registered in the country.

It is planned to annually increase the production volume of textile products by 20 percent, its exports - by 10 percent by bringing cotton processing at Uzbek own textile facilities up to 70 percent as part of the government program of the textile industry development for the period until 2016.