STATE STOCK - JOINT COMPANY
O’ZBEKYENGILSANOAT O’ZBEKYENGILSANOAT
1
TEXTILE INDUSTRY OF UZBEKISTAN:TEXTILE INDUSTRY OF UZBEKISTAN:
POTENTIAL TO RISE & OPPORTUNITY TO POTENTIAL TO RISE & OPPORTUNITY TO INVESTINVEST
“O’ZBEKYENGILSANOAT” : SIZE AND GROWTH
Uzbekistan Uzbekistan textile industrytextile industry
Uzbekistan Uzbekistan textile industrytextile industry
Location wise concentration of cotton processing in %, 2011
4
48%
63%
90%
95%
23%
14%
23%
14%
14%
10%
44%
18%13%
Our main partners
Indorama Kokand Textile:Partner company – IndoramaInvestment - US$ 43 mln.Production – 7 500 of cotton yarnExport – abt US$ 20 mln.Start – September 2011
Rieter Uzbekistan:Partner company – Rieter AGInvestment - US$ 4,0 mln.Production – 40 draw frame and carding machinesStart – April and September 2012 (est)
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
TTG-Tashkent: 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
Skilled labor resources
at US$ 200/month
1 Institute of Light Industry & Textile in Tashkent city, 42 Specialized colleges
15% price reduction of the cotton purchase and VAT refund on export
Domestic market of 29,5 mln. population
CIS market of US$ 6,4 bln. in free trade regime
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
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);
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.
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.
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 Bukhorotex2nd part of Bukhorotex Date of establishment: Date of establishment: 197419742nd part of Bukhorotex2nd part of Bukhorotex Date of establishment: Date of establishment: 19741974
Type of activity: stopped 2007 for Type of activity: stopped 2007 for renewing and deep modernization (1renewing and deep modernization (1stst part part restarted in 2009 with capacities 16’000 restarted in 2009 with capacities 16’000 combed and carded yarn)combed and carded yarn)
Type of activity: stopped 2007 for Type of activity: stopped 2007 for renewing and deep modernization (1renewing and deep modernization (1stst part part restarted in 2009 with capacities 16’000 restarted in 2009 with capacities 16’000 combed and carded yarn)combed and carded yarn)
LOCATIONLOCATION
JSCJSC “Bukhorotex”“Bukhorotex”
Transport infrastructure:
Distance km
- to highway 2
- to railway 0.2
BUILDINGS AND FACILITIESBUILDINGS AND FACILITIESMain units Production area,
hectaresTotal area, in
hectaresBuilt 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 yearInvestment: 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 ownedProposed for establishment ofnew 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 yearInvestment: 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. Equipment – US$ 5 – 15
mln. Working capital – US$ 1
- 2 mln.
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) Grey Fabric – 8-12 mln sq
meters Finished Fabrics – 4-6 mln
sq meters Garment – 3,5 mln. pcs a
yearInvestment: Reconstruction works - US$
2 - 4 mln. Equipment – US$ 40–70
mln 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) 239-17-11Fax: +998 (71) 253-93-58http://www.legprom.uz