Uzbekistan, Tashkent, Sept. 17 / Trend D. Azizov /
The South Korean Textile Technologies Group will put into operation the first stage of cotton fiber processing textile production in the Tashkent region in Uzbekistan worth $70 million at the end of the year, Uzbeklegprom told Trend on Monday.
The construction of the complex with a capacity of up to 8,000 tons of cotton per year began in the middle of last year.
According to the Uzbek government's decision, "Tehtile Technologies Group" bought unfinished buildings in the adjacent territory of Yukori-Chirchik district of Tashkent region at the utilization value of 683 million soums.
According to the purchase-sale contract, the investor must create a modern textile enterprise with a complete production cycle in 2011-2012.
Tehtile Technologies Group invests $ 50 million in establishing the complex, including $ 30 million in 2011, $ 20 million in 2012. According to the contract, investments are directed to the acquisition and installation of new equipment of leading world manufacturers.
Uzbeklegprom said the company has started installing the equipment.
It is expected that after reaching the design capacity in mid-2013, the company will produce 6,000 tons of cotton yarn, 7.5 million square meters of finished fabrics and 5 million pieces of ready garments annually. At least 80 percent of production will be exported.
It is planned to realize more than 100 projects worth more than $ 1.6 billion within the program of the textile industry development in Uzbekistan till 2016.
This will bring the level of domestic processing of cotton fiber to 80 percent of the total production volume and increase the export potential of the textile industry of the country more than three times.
Around 43 industrial enterprises worth $387 million were commissioned in Uzbek light industry over the past two and a half years.
At present, the Uzbek state association Uzbeklegprom (Uzbek light industry) implements 23 investment projects worth about $ 625 million.
The official exchange rate is 1.930.25 soums/$1.