February 19, 2007.
TASHKENT. The fact that the Uzbek cotton is becoming increasingly popular among the international consumers can be considered indisputable. It is more than convincingly illustrated by the contracts signed within the frame of the last year's International Cotton Fair held in Tashkent.
Moreover, today the demand for Uzbek cotton is so high that the policy of the Uzbek government aimed at protecting the economic interests of the state (in other words exporting finished goods rather than raw material) is making many "players" of the world cotton market introduce adjustments to their business plans.
Even more so, since the development of the process of further intensification of cotton fibre processing and production of ready-made garments, and increase in the export potential of the country has intensified substantially. This is particularly reflected in the Programme on development of textile industry's output for 2007-2012.
The Manager of the Head Department of Technical Policy and Forecasts of the UzbekYengilSanoat (Uzbek Light Industry) State Joint-Stock Comopany, the Candidate of Technical Sciences Dilbar Muhamedova spoke of the abovementioned programme to UzReport.
- Ms. Muhamedova, do you think there is a certain risk associated with the factual radical revision of the policy of Uzbekistan, which today is turning from one of the leading exporters of cotton fibre into the exporter of fabric and finished textile goods?
- I am sure that there is no risk associated with this. There cannot be any risk. This transition is not something unexpected, it has been carefully considered and thought out. Substantial preparatory and organizational work had been carried out for this purpose – the necessary infrastructure has been created, and foreign investments are being attracted, etc.
Large-scale reforms are being implemented in the country to gradually increase the volume of deep processing of cotton fibre through the establishment of modern enterprises and complexes specialized in the production of fabrics, as well as sewed and knitted goods that match the international standards.
You do the judgments, in 1995 goods for only US$34 million were exported. In 2007 the indicator made up US$441 million. In other words the risks in this sort of situation are not minimized, they are factually brought down to "zero".
Today the investment climate created in the textile industry of Uzbekistan is so attractive for foreign investors, our foreign partners are prepared to sign contracts with us as soon as this fall – during the next cotton fair.
And I do not even need to comment on what happened at the International Textile Fair in December: contracts for the total of US$306 million were signed. The appeal of the textile industry of Uzbekistan to foreign investors is supported by stable resource bases, high quality of cotton fibre, reasonable prices for energy resources, highly qualified human resources, and favourable investment climate created by the Government of the country.
With every new year, the capacity of our textile enterprises only grows, new objects are being built, the volume and quality of products is being raised, and the pace of production growth is rising. According to last year's results it made up 153%. The production of consumer goods has grown by 102.5%. And this is far not the limit, this is only the beginning of the process.
- Who are your partners on the way to developing the textile industry of Uzbekistan?
- Today the textile industry of Uzbekistan is represented by numerous enterprises set up in partnership with investors from Germany, Italy, Korea, Turkey, Russia, India, the United States, the United Kingdom and other countries of the world. In 2007 alone, over US$87 million of foreign investments were directed into the industry; 23 new enterprises were opened and as a result some 10,000 new jobs were created.
Thus, at this point the textile enterprises have the capacity to process 320,000 tonnes of cotton fibre, produce over 300,000 tonnes of yarn, 195 million running meters of cotton fabric, 160 million pieces of sewed and knitted garments, and 11 million pairs of hosiery products.
Moreover, this year it is planned to launch 20 new objects with the total volume of investments of US$119.4 million. Restructuring, technical and technological re-equipment of the enterprises of the industry will be carried on. The tasks for the next three years include increasing the volume of industrial output 1.7 times. At the same time it is planned to expand the geography of those wishing to work in partnership with us in the textile business of Uzbekistan.
For example, the Vice President of the Belgian Picanol Group Jan Laga during his visit to Uzbekistan as a member of the business delegation of Belgium said that he was convinced that the enterprises of Uzbekistan have achieved a high level of production of textile products with the value added higher than cotton yarn.
Belgian entrepreneurs expressed their interest in participation in the international exhibition of equipment for textile industry with the aim of studying the opportunities for cooperation with the enterprises of Uzbekistan more closely. The exhibition will be held in Tashkent in 2008. The entrepreneurs also spoke of their plans to open offices of their companies in Uzbekistan.
There are numerous examples like this one, and after the implementation of the Programme on development of the textile industry for 2007-2012, I am convinced that the number of such examples will grow even higher.
- By the way, could you please provide details about this modernization programme, particularly in figures?
- This programme was developed not only for stimulation of further intensification of cotton processing, and further conversion of semi-finished textiles into ready-made garments, but also to satisfy the growing demand of the population for consumer goods and to create new jobs.
That is the programmes takes into account not only the economic component consisting of the renewal and technological-re-equipment of industries and enterprises, creation of new competitive export-oriented productions, further development of small business and private enterprise with the aim of maximum satisfaction of the population's needs for different goods and services, but also the social component of the issue.
If we convert all this into figures, I can say that the programme envisages the implementation of 79 projects for the total amount of US$614.6 million by 2012. At the same time it is planned to create 36,200 new jobs. As a result of the implementation of the projects envisaged by the modernization programme, by 2012 the processing of cotton fibre will be raised to 510,000 tonnes, production of cotton yarn – to 407,100 tonnes, manufacturing of fabrics – to 319.56 milllion square meters, and manufacturing of ready-made garments – to 275.6 million pieces.
Overall, the reforms being implemented are aimed at the renewal and technological re-equipment of the industry and enterprises, creation of new competitive export-oriented productions, as well as further development of small business and private enterprise with the aim of maximizing the satisfaction of population's demand for different goods and services. In other words, it is aimed at the development of the textile industry of Uzbekistan, raising it to the position of one of the key components of the development of industrial production in the country.
Source: Business Information Portal "UzReport.com" ( available at: www.uzreport.com )
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