Textile JV put into operation in Uzbekistan
Tashkent, Uzbekistan, August 29
By Demir Azizov– Trend:
Singapore’s Indorama Industry Pte Ltd, co-founder of Indorama Kokand Textile joint venture in Uzbekistan, has implemented a project to increase the capacity of a textile joint venture worth $ 51 million, O'zbekYengilSanoat JSC (Uzbek Light Industry Company) told Trend Aug. 29.
According to the message, Indorama Kokand Textile joint venture’s capacity in cotton fiber processing increased by 31 percent from 39,000 tons to 51,000 tons per year, while the production of cotton yarn reached an annual level of 40,000 tons.
Indorama Kokand Textile joint venture was established in 2010. The co-founders are Indorama Industry Pte LTD (76 percent) and the Uzbek National Bank for Foreign Economic Activity (24 percent), the message said.
According to the terms of the investment agreement, signed with the Uzbek government, Singapore’s company was to invest at least $55 million in the development of the textile industry in 2010-2013, of which $15 million - the company's own funds, $40 million - loans of foreign banks without the Uzbek government’s guarantee drawn upon project financing principles.
The foreign investments worth more than $160 million were made in the textile project.
According to the Uzbek Light Industry Company, Singapore’s company is currently preparing a new project to establish a textile company in the Bukhara region, which will also produce cotton yarn.
Uzbekistan ranks sixth in the world in cotton fiber production and third in cotton fiber export.
Uzbekistan annually produces about 3.5 million tons of raw cotton and 1.2 million tons of cotton fiber.
Currently, Uzbekistan processes more than 40 percent of cotton fiber.
The cotton fiber processing is planned to reach 70 percent by 2020.