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State Joint-Stock Company «O’zbekyengilsanoat» 1 O’zbekyengilsanoatTextile industry of Uzbekistan investment projects proposals

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Page 1: “O’zbekyengilsanoat” Textile industry of Uzbekistan ... industry of Uzbekistan investment projects proposals State Joint-Stock Company «O’zbekyengilsanoat » 2 “O’zbekyengilsanoat”

State Joint-Stock Company «O’zbekyengilsanoat» 1

“O’zbekyengilsanoat”

Textile industry of Uzbekistan investment projects proposals

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State Joint-Stock Company «O’zbekyengilsanoat» 2

“O’zbekyengilsanoat” Privileged ways of cooperation for Japan companies

• 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).

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State Joint-Stock Company «O’zbekyengilsanoat» 3

“O’zbekyengilsanoat”

Production - 1,0+ mln tn annuallyQuality - 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 cottonSupply – from one of the 20 cotton terminals from all over the country

Cotton fiberCotton fiber

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State Joint-Stock Company «O’zbekyengilsanoat» 4

“O’zbekyengilsanoat”

Cotton Yarn• 300 thousand tons• 95% produced at world

class spinning capacities • 60% spinning capacities

less than 10 years old• priced in local currency

as well as in US DollarsSilk• Row silk – 900 tons• Silk yarn – 190 tons• 40% produced at modern

technologies less than 10 years old

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State Joint-Stock Company «O’zbekyengilsanoat» 5

“O’zbekyengilsanoat” Uzbekistan requires investors who possess:

• Financial capital.

• Know-how (modern technologies).

• International management (brand).

• Distributions channels and access to international markets.

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State Joint-Stock Company «O’zbekyengilsanoat» 6

“O’zbekyengilsanoat”

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, additional 5 % discount subject of production of finished goods;

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.

Main incentives & benefits for textile producers

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State Joint-Stock Company «O’zbekyengilsanoat» 7

“O’zbekyengilsanoat”

Cost of main production factors

• Water – $ 0,10 / 1 м3;• Natural gas – $ 0,015 / м3;• Power energy – $ 0,04 / kw/h;• Petroleum– $ 0,72 / l;.

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State Joint-Stock Company «O’zbekyengilsanoat» 8

“O’zbekyengilsanoat” Investment project proposal # 1(integrated textile production):

2nd part of BukhorotexDate of establishment: 19742nd part of 2nd part of BukhorotexBukhorotexDate of establishment: Date of establishment: 19741974

Type of activity: stopped 2007 for renewing and deep modernization (1st

part restarted in 2009 with capacities 16’000 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 restarted in 2009 with capacities part restarted in 2009 with capacities 1616’’000 combed and carded yarn)000 combed and carded yarn)

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State Joint-Stock Company «O’zbekyengilsanoat» 9

“O’zbekyengilsanoat”

0.2- to railway

2- to highway

Distancekm

Transport infrastructure:

JSCJSC““BukhorotexBukhorotex””

LOCATIONLOCATION

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State Joint-Stock Company «O’zbekyengilsanoat» 10

“O’zbekyengilsanoat” BUILDINGS AND FACILITIESBUILDINGS AND FACILITIES

19941,40,237- part(Transport

Department and other buildings)

19721,650,675- part(Mechanical

factory)

198518,268,444- part(Finishing mill)

1976-19774,71,73-part(dying house)

1981-198324,813,362-part (Spinning & weaving

mills)

Built yearTotal area, in hectares

Production area, hectares

Main units

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State Joint-Stock Company «O’zbekyengilsanoat» 11

“O’zbekyengilsanoat”

40 000cubic metresDrainage system

3 200 000Kilowatt /hoursPower supply

5 870KlHeating

40 000cubic metresTechnical water

18 000cubic metresCold water

CapacityUnitsResource name

AVAILABLE INFRASTRUCTUREAVAILABLE INFRASTRUCTURE

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State Joint-Stock Company «O’zbekyengilsanoat» 12

“O’zbekyengilsanoat” Investment Proposal1st 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. peaces a yearInvestment:• Reconstruction works – US$ 2 - 8 mln.• Equipment – US$ 20 – 100 mln• Working capital – US$ 1 - 3 mln

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State Joint-Stock Company «O’zbekyengilsanoat» 13

“O’zbekyengilsanoat” Investment project proposal # 2(spinning, knitted fabric and garment):

JSC “Bofanda”Address: Uzbekistan, Samarkand city, st. Juravleva – 166a;

Project capacity: 4,0 thousand tons yarn2,0 thousand tons of knitted fabric and 5,0 mln. units of knitwear

Total cost of the project: 10,5 mln. US dollars

Buildings, constructions and utilities:Total area of the enterprise – 5.0 hectares.Production (covered) area – 29 000 sq. m.Utility units available – electricity, water, gasProviding 100% with local raw materials.Private owned, currently operational (knitting, dying, sewing).The entity is proposed to implement joint project with deep

modernization

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“O’zbekyengilsanoat” Investment project proposal #3 (spinning & weaving):

“Surkhontex” (operational factory)

Address: Surkhondarya Region, Jarkurgan city;

Buildings, constructions and utilities:Total area of the enterprise – 10 hectars.Production (covered) area – 26 thousand sq. m in two building (spinning and

weaving).Utility units available – electricity, water Logistics: Highway – 0,5 km. Railway – 1 km.Airport Termez – 35 km.Private owned, Current Production (spinning equipment dated 2004)Cotton yarn – 4000 tons a yearGrey Fabric – 10 mln sq.m.Proposal to enlarge production up to 7000 tons

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State Joint-Stock Company «O’zbekyengilsanoat» 15

“O’zbekyengilsanoat” Investment project proposal # 4 (wool yarn and blended fabric):

JV “Kasansay textile”Address: Namangan Region, Kasansay city;

Buildings, constructions and utilities:Total area of the enterprise – 212 000 sq. m.Production (covered) area – 157 000 sq. m.Utility units available – electricity, water, gas, sewage

Logistics: Highway – nearby. Railway – 5 km.Airport – 25 km.

Currently managed by National Bank, operational

Proposed for enlargement and modernization current production

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State Joint-Stock Company «O’zbekyengilsanoat» 16

“O’zbekyengilsanoat”Investment project proposal # 5

(spinning and weaving):JSC “Kitop ip yigiruv”

Address: Kitop city, Kashkadarya region;Project capacity: 6 thousand tons of yarnTotal cost of the project: 10,5 mln. US dollars Buildings, constructions and utilities:Total area of the enterprise – 21.0 hectares.Production (covered) area – 175 400 sq. m.Utility units available – electricity, water, gasProviding 100% with local raw materials.Private owned, not operational Proposed for establishment of new production

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State Joint-Stock Company «O’zbekyengilsanoat» 17

“O’zbekyengilsanoat”Investment project proposal # 6(knitted fabric and garments)

JSC “8 March”Address: Uzbekistan, Samarkand city, st. Navai- 25;

Project capacity: 6.0 mln. units of knitwearsTotal cost of the project: 9.0 mln. US dollars

Buildings, constructions and utilities:Total area of the enterprise – 2.0 hectares.Production (covered) area – 10 000 sq. m.Utility units available – electricity, water, gasProviding 100% with local raw materials.

Private owned, currently operationalProposed for establishment of new production

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State Joint-Stock Company «O’zbekyengilsanoat» 18

“O’zbekyengilsanoat”Investment project proposal # 7

(knitted fabric and garment):

JSC “named by A. Fazilov”Address: Bukhara Region, Bukhara city;

Buildings, constructions and utilities:Total area of the enterprise – 8 000 sq. m.Production (covered) area – 3 600 sq. m.Utility units available – electricity, water, gas, sewage

Logistics: Highway “Buyuk Ipak Yuli” – 1,5 km. Railway – 2 km.Airport – 3 km.Partly state owned, not operational Proposed for establishment of new production

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“O’zbekyengilsanoat” Investment project proposals # 8(cotton yarn, blended fabric):

JSC “Mangit”Address: Karkalpakistan, Mangit city;

Buildings, constructions and utilities:Total area of the enterprise – 85 000 sq. m.Production area – 39 000 sq. m.Utility units available – electricity, water, gas, sewage

Logistics: Highway – 0,2 km. Railway – 3 km.Airport – 45 km.Private owned, not operational Proposed for establishment of new production

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“O’zbekyengilsanoat” Investment project proposal # 9(yarn, woven fabric production):

JSC “Hodjeli Textile”Address: Karakalpakstan, Hojeli city;

Buildings, constructions and utilities:Total area of the enterprise – 82 000 sq. m.Production (covered) area – 39 000 sq. m.Utility units available – electricity, water, gas, sewage

Logistics: Highway “Buyuk Ipak Yuli” – 0,2 km. Railway – 3 km.Airport – 100 km.State owned, not operational Proposed for establishment of new production

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State Joint-Stock Company «O’zbekyengilsanoat» 21

“O’zbekyengilsanoat”Investment project proposal # 10

(terry fabric production):

Branch of JSC “Bukharateks” (Unfinished construction)

Address: Bukhara Region, Shafrikan city;

Buildings, constructions and utilities:Total area of the enterprise – 106 700 sq. m.Production (covered) area – 26 690 sq. m.Utility units available – electricity, water

Logistics: Highway “Buyuk Ipak Yuli” – 9 km. Railway “Kiziltepa”– 25 km.Airport – 30 km.State ownedProposed as Green Field Project with establishment of new

production

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State Joint-Stock Company «O’zbekyengilsanoat» 22

“O’zbekyengilsanoat”Investment project production # 11

(cotton yarn and fabric):

Organization of textile mill (Unfinished construction)

Address: Tashkent Region, Buka city;

Buildings, constructions and utilities:Total area of the enterprise – 80 000 sq. m.Production (covered) area – 24 000 sq. m.Utility units available – electricity, water

Logistics: Highway – 1,5 km. Railway – 2 km.Airport – 100 km.State ownedProposed as Green Field Project with establishment of new

production

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“O’zbekyengilsanoat”

Investment project proposal # 12(textile complex):

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 ownedProposed as Green Field Project with establishment of new

production

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“O’zbekyengilsanoat”

Products offers :

A wide range of high quality cotton yarn (Ne7/1-Ne40/1);

A wide range of fabric made of 100% cotton (CD20xCD12 /112x56 – 3/1 – 64”, CD24xCD20/76x130 – 3/1 – 70” and etc.);

A big choice of textile products such as linens and underwear, upper and children’s clothes.

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“O’zbekyengilsanoat”

Thank you for your attention!

State Joint-Stock Company “O’zbekyengilsanoat ”

45 Babur Str., Tashkent, 100100, Uzbekistan

Tel: +998 (71) 253-92-91Fax: +998 (71) 239-17-11http://www.legprom.uz

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“O’zbekyengilsanoat”

Production capacity of textile enterprises

Production capacity of textile enterprises

Cotton yarn – 300 thousand tons; Cotton yarn – 300 thousand tons;

Weaved fabric – 111,7 mln. sq.m;Weaved fabric – 111,7 mln. sq.m;

Knitted fabric - 59,0 thousand tons;Knitted fabric - 59,0 thousand tons;

Knitted products – 197,2 mln. pieces.Knitted products – 197,2 mln. pieces.

Uzbekistan textile industryUzbekistan textile industryUzbekistan textile industry

Row silk – 1,4 thousand tons;Row silk – 1,4 thousand tons;

Hosiery – 20,0 mln. pare;Hosiery – 20,0 mln. pare;