Tashkent 2005

THE INVESTMENT POTENTIAL OF THE INVESTMENT POTENTIAL OF SILK INDUSTRY OF THE REPUBLIC SILK INDUSTRY OF THE REPUBLIC

OF UZBEKISTANOF UZBEKISTAN

““Uzbek SilkUzbek Silk”” AssociationAssociation

GREAT SILK ROADGREAT SILK ROAD

The history of silkworm breeding in Uzbekistan goes deep to many centuries back. “Great Silk Road”, a trade channel from China to Europe, passing through all Asian countries, played a big role in development of silkworm breeding & silk weaving in Central Asian countries, especially in Uzbekistan.

The history of silkworm breeding in Uzbekistan goes deep to many centuries back. “Great Silk Road”, a trade channel from China to Europe, passing through all Asian countries, played a big role in development of silkworm breeding & silk weaving in Central Asian countries, especially in Uzbekistan.

HISTORY OF HISTORY OF SILKWORM BREEDING SILKWORM BREEDING IN IN UZBEKISTAN UZBEKISTAN

Research activities of the Institute of Archaeology of the Academy of Science witness the existence of silkwormbreeding & silk weaving in the territory of Uzbekistan 4000 years ago – in Ferghana valley, on the springs of Zaravshanriver, also in the south of Uzbekistan.

Research activities of the Institute of Archaeology of the Academy of Science witness the existence of silkwormbreeding & silk weaving in the territory of Uzbekistan 4000 years ago – in Ferghana valley, on the springs of Zaravshanriver, also in the south of Uzbekistan.

ACTING ENTERPRISES INCLUDED TO ACTING ENTERPRISES INCLUDED TO ““UZBEK UZBEK IPAGIIPAGI”” ASSOCIATIONASSOCIATION

The “Uzbek ipagi” Association includes enterprises, on developing and primary processing of cocoons:

122 head cocoon dryers

14 grain-producing facilities

3 pedigree silkworm stations

10 mulberry-tree grow farm

7 silk-reeling factories

6 joint ventures

13 provincial companies, including:

Scientific research institute of silkworm breeding

Scientific research institute of silk industry «Shoyi»

6 silk-weaving facilities

JOINT VENTURES IN THE SILK JOINT VENTURES IN THE SILK INDUSTRYINDUSTRY

5. Uzbek-Arabic JV «Navoiy Silk»(filoselle threads)

5. Uzbek-Arabic JV «Navoiy Silk»(filoselle threads)

1. Uzbek-China JV “Hvashen - BukharaCo. Ltd.” (filoselle threads)

1. Uzbek-China JV “Hvashen - BukharaCo. Ltd.” (filoselle threads)

2. Uzbek-Japan JV “SILK ROAD” (silkyarn)

2. Uzbek-Japan JV “SILK ROAD” (silkyarn)

3. Uzbek-Korean JV “TONMEN” (cutcocoons)

3. Uzbek-Korean JV “TONMEN” (cutcocoons)

4. Uzbek-China JV «Hadan» (silk products)

4. Uzbek-China JV «Hadan» (silk products)

6. Uzbek -American JV «Romstar»(filoselle threads and silk fabrics).

6. Uzbek -American JV «Romstar»(filoselle threads and silk fabrics).

Share of world production of Share of world production of silkwormsilkwormcocoonscocoons

China80%

India16%

Uzbekistan 3%

others1%

Uzbekistan is the third world producer of cocoons after China and India. And Uzbekistan is the first world producer of cocoons on per capita basis. Today Uzbekistan's share in total productions of cocoons throughout CIS countries exceeds 80 percent.

Uzbekistan is the third world producer of cocoons after China and India. And Uzbekistan is the first world producer of cocoons on per capita basis. Today Uzbekistan's share in total productions of cocoons throughout CIS countries exceeds 80 percent.

Dynamics of export production of theDynamics of export production of the««Uzbek silkUzbek silk»» AssociationAssociation

0,64

6,23 6,43

10,39 10,2 12,0

16,2718,60

0,02,04,06,08,0

10,012,014,0

16,018,020,0

1998 1999 2000 2001 2002 2003 2004 2005 (forecast)

thousand USD

In 2004 the export growth reached - 35,6%In 2005 export is scheduled to increase by - 14,5%In 2004 the export growth reached - 35,6%In 2005 export is scheduled to increase by - 14,5%

The types of export productionThe types of export production

The exports of silk is growing annually. If in 1998 the exports totaled US$ 0,64 mln., then by 2004 this index reached US $ 16,27 mln.

The exports of silk is growing annually. If in 1998 the exports totaled US$ 0,64 mln., then by 2004 this index reached US $ 16,27 mln.

The main importers of the silk production are the countries like China, India, Japan, Vietnam, Korea, Turkey and others.

The main importers of the silk production are the countries like China, India, Japan, Vietnam, Korea, Turkey and others.

cocoons 20%

silk waste 10%

silk yarn13%

raw silk threads

55%silk cloth

2%

0

1000

2000

3000

4000

5000

6000

2000 2002 2003 2005(f orecast)

Dynamics of attraction of foreign Dynamics of attraction of foreign investmentsinvestments

thousand USD

Attraction of the field among foreign investorsAttraction of the field among foreign investors

Steady sources of raw materials; Steady sources of raw materials;

Low costs for energy resources; Low costs for energy resources;

Inexpensive but highly qualified labor resources; Inexpensive but highly qualified labor resources;

Profound knowledge and traditions of growing the silk cocoons;Profound knowledge and traditions of growing the silk cocoons;

Specific design of finished silk clothes in Uzbekistan;Specific design of finished silk clothes in Uzbekistan;

Substantial market for finished goods;Substantial market for finished goods;

Favorable investment climate and preferential regime for foreign investors .Favorable investment climate and preferential regime for foreign investors .

The growth of value added of silk production on the example of one of the enterprises of

«Uzbek Ipagi» Association

9$/3kg

16$/1kg

22,5$/12,5 m.

60$/3 unit.

+7$

+6,5$

+37,5$

Prospects of silk industry of UzbekistanProspects of silk industry of Uzbekistan(2006(2006--2010)2010)

The 16 investment projects are envisaged to be implemented within the Investment Program of the «Uzbek Ipagi» Association through foreign direct investments amounting at about US$ 20 mln.

The 16 investment projects are envisaged to be implemented within the Investment Program of the «Uzbek Ipagi» Association through foreign direct investments amounting at about US$ 20 mln.

Implementation of this program can provide: Implementation of this program can provide:

-manufacture of silkworm – 12000 boxes-manufacture of silkworm – 12000 boxes

-manufacture of raw silk threads – 1050 tons-manufacture of raw silk threads – 1050 tons

-manufacture of clothes – 3521 000. m.-manufacture of clothes – 3521 000. m.

-manufacture of finished products – 300 000. units-manufacture of finished products – 300 000. units

-jobs – about 4000 persons.-jobs – about 4000 persons.

At present silk is an integral part of textile industry and as silk threads are added to cotton yarn, we can get a unique by its structure and design composition of material, which is used in manufacturing the finished clothes, scarf, ties, shirts and others.

At present silk is an integral part of textile industry and as silk threads are added to cotton yarn, we can get a unique by its structure and design composition of material, which is used in manufacturing the finished clothes, scarf, ties, shirts and others.

«Uzbek Ipagi» Association welcomes every business partner and is ready to cooperate on

the mutual basis

THANK YOU FOR ATTENTION!