February 27, 2014
Future Prospects
Today the light industry of Uzbekistan is distinct with its technologies manufactured by world’s leading companies, the broad geography of exports, and up-to-date full cycle production facilities.

However, some twenty years ago, the majority of cotton produced in Uzbekistan was exported as raw materials due to lack of modern processing facilities. The situation had to be changed urgently, because, being the leading cotton producer and exporting raw materials, Uzbekistan received only a half of the possible revenue. In the early 1990s, the internal market was filled by imported and not always high-quality goods, made from recycled Uzbek cotton.

To bring the industry to a new level Uzbekistan designed an industry development strategy with investments, upgrade and focus on finished goods as the key factors. Foreign investors received a whole range of benefits and preferences, which empowered the establishment of dozens of modern processing plants across the country in a short time. Over the last 20 years more than $ 1.8 billion was disbursed for the upgrade of the sector and more than 150 projects were implemented. This is just the beginning. By the end of 2015, O’zbekyengilsanoat, as a coordinator of the development of light industry, is planning to complete the implementation of another dozen of projects worth more than $1.7 billion under the industrial development program.

Currently, the annual aggregate production volume at all O’zbekyengilsanoat enterprises makes up 320.2 thousand tons of cotton yarn, 225.2 million meters of cotton cloth, 54.6 thousand tons of knitted fabric, 179 million pieces of garment and knitwear and 45 million pairs of hosiery. Last year, the enterprises manufactured goods valued at more than 7.95 trillion soums (Currency rates of CB from 27.02.2014 1$=2229.71 soums) with the growth of 13.2% YOY. The share of industry in total industrial output reached 13% (in 2012 - 12.9%). Compared with 2012, big manufacturers increased the production of cotton fabrics by 1.4 times, knitted fabric 1.3 times, cotton yarn 1.2 times, jerseys - by 7.4%, mixed fabrics - by 7%.

Last year was marked by the launch of two manufacturing enterprises, which do not yield to world\'s leading manufacturers in instrumentation.

A spinning enterprise Jizzakh Plasteks with the project cost of $42 million was established in Jizzakh region. The first stage of the project on the establishment of a foreign enterprise Textile Technologies Group, which is expected to produce up to six thousand tons of cotton yarn per year, was completed in Yuqorichirchiq district of Tashkent region. Upon completion of the project the enterprise will also manufacture cotton fabric and garments.

The dynamic development allows an active expansion of exports. Being exported to more than 40 countries, Uzbek goods are widely known beyond the country today. CIS countries, EU, China, Turkey and South Korea are major importers of the Uzbek light industry. This year Uzbekistan expects a significant increase in exports also through the development of marketing services and promotion of domestic products in the world markets, in which 40 dealerships companies are involved.

It is important that the country has an engineering framework for the development of light industry. Uzbekistan has recently started manufacturing modern textile equipment. The Swiss company Rieter AG implemented a project on building an assembly plant for the production of belt, carding and ring spinning machines. The course on purchasing more than 700 pieces of equipment for the manufacture of garments, yarn and linen by the end of 2014 proves a commitment to innovation.

(Source: “Uzbekistan Today” newspaper)

FRDU issues US$280m to construction of new railroad

Fund for Reconstruction and Development of Uzbekistan (FRDU) provided a loan for US$280 million to Uzbekistan Temir Yollari state joint stock railway company.

The loan was provided to construction of railroad Angren-Pap, which will go through Kamchik pass.

The funds will be used to purchase necessary equipment and tools, as well as to carry out mountain construction works with the project.

Uzbekistan Temir Yollari started construction of new electrified railway Angren-Pap with the length of 122.7 km in July 2013.

The railway will pass through Qamchiq pass and link Ferghana Valley (Andijan, Namangan and Ferghana regions) with other part of Uzbekistan.

Preliminary cost of the project makes up US$1.769 billion and was included to investment plan of the company for next five years.

The project will be financed due to resources of the state budget, own resources of Uzbekistan Temir Yollari and loans of international financial institutions. China Railway Tunnel signed a contract with the state joint stock railway company Uzbekistan Temir Yollari for construction of tunnel through Qamchiq pass with the cost of US$455million in September 2013.

Within the contract the Chinese company will construct tunnel with the length of 19 km for movement of railway and adit tunnel, which will be used in case of accident.

Uzbekistan Temir Yollari is planning to use investments for US$293.72 million in 2014, including US$120 million of own resources.

(Source: UzDaily.com)


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