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Uzbek, Italian silk associations eye creating industrial park in Uzbekistan

Business Materials 28 July 2018 13:26 (UTC +04:00)

Baku, Azerbaijan, July 28

By Fikret Dolukhanov – Trend:

Uzbek Silk Association Uzipaksanoat and the Italian Silk Association have agreed to create an Italian industrial park in Uzbekistan, Uzbek media reported.

The industrial park will house enterprises specializing in processing of cocoons, manufacturing silk products, as well as producing equipment and necessary components.

The parties have already agreed on creation of the first joint venture to produce finished silk products. Creation of the park, according to experts, will increase the export of silk products to the European Union, as well as will help entering new markets in European countries.

The association is negotiating with Turkish textile companies to manufacture new products for the country, such as silk carpets and painted silk fabrics.

Within the framework of the program of measures on integrated development of the silk industry until 2021, approved by the government, 20 plants for production of grains and about 30 plants for processing of cocoons are currently being modernized in the country. Also, work is underway to organize 11 new profile enterprises with a total cost of $83.2 million for deep processing of silkworm cocoons. Most of the enterprises are planned to be commissioned in 2018.

As part of the modernization, agreements were signed to purchase new equipment from such well-known companies as Van De Wiele, Picanol and Reggiani. It is planned to increase production of raw silk two-fold within the next three years and increase the figure to 3,000 tons per year, as well as to increase production of silk fabric eight-fold to 11.2 million linear meters per year thanks to the deep processing of raw materials.

In 2016, the level of use of production capacities of silk processing enterprises in Uzbekistan was only 17 percent, whereas in 2017 the figure reached 54 percent. In 2016, products worth $20.9 million were exported, while in 2017 the figure reached $37.7 million.

Silk-producing enterprises of Uzbekistan are currently manufacturing four types of products: raw silk, silk wool, silk fabric and finished silk products, whereas in 2017 the production had been focused on raw silk only. The country is planning to establish production and export of at least five types of silk products by 2021.

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