S T A T E
S T O C K
-
J O I N T
C O M P A N Y
O’ZBEKYENGILSANOAT
TEXTILE INDUSTRY OF UZBEKISTAN:
POTENTIAL TO RISE & OPPORTUNITY TO INVEST
1
“O’ZBEKYENGILSANOAT” : SIZE AND GROWTH
6 SECTORS
Spinning
&Weaving
Knitting&
Sewing
DyеingFinishing
Nonwoven
Silk
Production
Hosiery
MEMBERS - 271
Foreign enterprises - 150
Local enterprises - 121
ATTRACTED INVESTMENT - USD 1.9 bn
Foreign - USD 1.3 bn
Local/ bank loans - USD 0,6 bn
EMPLOYMENT - 62 000
Uzbekistan textile
industry
Location wise concentration of cotton processing in %, 2011
10%
44%
23%
23%
95%
13%
48%
63%
18%
90%
14%
14%
14%
4
Our main partners
Indorama Kokand Textile:
Daewoo-Bukhara-Textile:
 Partner company – “Daewoo
International”
 Investment - US$ 52,5 mln.
 Production - 16’000 of cotton yarn
 Export – abt US$ 30,0 mln.
 Start – November 2009
Rieter Uzbekistan:
 Partner company – Rieter AG
 Investment - US$ 4,0 mln.
 Production – 40 draw frame and
carding machines
 Start – April and September
2012 (est)
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Partner company – Indorama
Investment - US$ 43 mln.
Production – 7 500 of cotton yarn
Export – abt US$ 20 mln.
Start – September 2011
TTG-Tashkent:
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Partner company – TTG, Korea
Investment - US$ 80,0 mln.
Financing – 100% FDI
Production - 6’000 of cotton yarn
7,5 mln. sq.m fabric
5 mln. pieces of garment
Start – September 2012 (est)
Facility – Green Field at Zero cost
Factors of competitiveness
Item
Cost in USD
Cotton fiber production
1,1 + mln. tons
Yarn production
370 + thousand tons
Low energy cost
at US$ 0,04/kWt
at US$ 200/month
Skilled labor resources
1 Institute of Light
Industry & Textile in
Tashkent city, 42
Specialized colleges
15% price reduction of the cotton purchase and
VAT refund on export
Item
Cost in USD
Water
0.25/1m3
Natural gas
0.05/m3
Power energy
0.04/kWt/h
Petroleum
0.86/1
Diesel
0.78/1
Furnace oil
0.29/1
Coal
0.02/kg
Domestic market of 29,5 mln. population
CIS market of US$ 6,4 bln. in free trade regime

Quality - Medium staple of world
recognized premium quality (3rd
ranking in world export)

Price - 15% price reduction of the
purchase of cotton (upfront)

20% reimbursement of VAT on the
purchase price of cotton

Supply – from one of the 20 cotton
terminals from all over the country
Cotton Yarn
 370 thousand tons
 95% produced at world class
spinning capacities
 80% spinning capacities less
than 10 years old
 priced in local currency as
well as in US Dollars
Silk
• Row silk – 900 tons
• Silk yarn – 190 tons
• 40% produced at modern
technologies less than 10
years old
Main incentives & benefits
for textile producers
producers of hosiery & ready garment are exempted from all taxes
(except VAT);

textile exporters (more than 80% to be exported) are exempted from
property tax (3,5%).

100% exemption from payments of custom payments on
technological equipment;

100% exemption from payments of custom payments on row
materials not produced in Uzbekistan (synthetic fiber, fabric, etc);
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15% discount from world cotton price;

Special facilities to finance the cotton with the rule of 15% cash
payment and 85% payable in 90 days, covered by bank guarantee;

Zero rating VAT (20%) on export.
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Financial capital.

Know-how (modern technologies).

International management (brand).

Distributions channels and access to
international markets.
Main incentives & benefits
for textile producers
producers of hosiery & ready garment are exempted from all
taxes (except VAT);

textile exporters (more than 80% to be exported) are exempted
from property tax (3,5%).

100% exemption from payments of custom payments on
technological equipment;

100% exemption from payments of custom payments on row
materials not produced in Uzbekistan (synthetic fiber, fabric, etc);

15% discount from world cotton price;

Special facilities to finance the cotton with the rule of 15% cash
payment and 85% payable in 90 days, covered by bank guarantee;

Zero rating VAT (20%) on export.
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Green field project designed by Project initiator
(we could offer land or unfinished constructions);
Development of the Project in existing buildings
(existing textile factories with all necessary
infrastructure);
Projects requiring new management to be developed
in Partnership with Uzbek companies and Banks
(defaulted textile companies with modern production
facilities).
2nd part of Bukhorotex
Date of establishment: 1974
Type of activity: stopped 2007 for
renewing and deep modernization (1st part
restarted in 2009 with capacities 16’000
combed and carded yarn)
LOCATION
JSC “Bukhorotex”
Transport
infrastructure:
- to highway
- to railway
Distance
km
2
0.2
BUILDINGS AND FACILITIES
Main units
Production area,
hectares
Total area, in
hectares
Built year
2-part (Spinning &
weaving mills)
13,36
24,8
1981-1983
3-part
(dying house)
1,7
4,7
1976-1977
4- part
(Finishing mill)
8,44
18,26
1985
5- part
(Mechanical factory)
0,67
1,65
1972
7- part
(Transport Department
and other buildings)
0,23
1,4
1994
1st Phase Production:
 Cotton yarn - 8-16 thousand tons (ring and open
end)
 Grey Fabric – 10-16 mln sq meters
 Denim – 4-8 mln sq meters
 Garment - 10 mln. pcs a year
Investment:
 Reconstruction works – US$ 2 - 8 mln.
 Equipment – US$ 20 – 100 mln
 Working capital – US$ 1 - 3 mln
“Bobur” Joint Stock Company
Address: Andijan city, 73 Bobur avenue;
Buildings, constructions and utilities:
Total area of the enterprise – 66.5 hectares
Production (covered) area – 41 700 sq. m.
Utility units available – electricity, water, gas, sewage
Logistics:
Highway – 0.5 km.
Railway – 2 km.
Airport – 3 km.
State owned
Proposed for establishment of
new integrated production
Production:
 Cotton yarn - 6-10 thousand tons (ring and
open end)
 Grey Fabric – 8-12 mln sq meters
 Denim – 4-6 mln sq meters
 Garment – 3,5 mln. pcs a year
Investment:
 Reconstruction works – US$ 2 - 4 mln.
 Equipment – US$ 50 – 80 mln
 Working capital – US$ 1 - 3 mln
JSC “Kitop ip yigiruv”
Address: Kitop city, Kashkadarya region;
Project capacity: 6 thousand tons of yarn
Total cost of the project: 10,5 mln. US dollars
Buildings, constructions and utilities:
Total area of the enterprise – 21.0 hectares.
Production (covered) area – 17 400 sq. m.
Utility units available – electricity, water, gas
Providing 100% with local raw materials.
Private owned, not operational
Proposed for establishment of new
production
Production:
Cotton yarn - 5-8 thousand
tons (ring and open end)
Investment:

Reconstruction works –
US$ 1 – 2 mln.
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Equipment – US$ 5 – 15
mln.
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Working capital – US$ 1 - 2
mln.
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Organization of integrated mill
(unfinished construction)
Address: Harezm Region, Bagat city;
Buildings, constructions and utilities:
Total area of the enterprise – 199 000 sq. m.
Production (covered) area – 31 104 sq. m.
Utility units available – electricity, water, gas
Logistics:
Highway – 3 km.
Railway – 10 km.
Airport – 20 km.
State owned
Proposed for establishment of new
production
Production:

Cotton yarn - 6-8 thousand tons
(ring and open end)
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Grey Fabric – 8-12 mln sq
meters
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Finished Fabrics – 4-6 mln sq
meters
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Garment – 3,5 mln. pcs a year
Investment:

Reconstruction works - US$ 2 4 mln.
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Equipment – US$ 40–70 mln
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Working capital – US$ 1-3 mln
Thank you
for your attention!
State Joint-Stock Company
“O’zbekyengilsanoat ”
45 Babur Str., Tashkent,
100100, Uzbekistan
Tel: +998 (71) 239-17-11
Fax: +998 (71) 253-93-58
http://www.legprom.uz