Daewoo International to invest in modernization of two textile enterprises in Uzbekistan

Tashkent, Uzbekistan, June 29 By Demir Azizov- Trend: South Korea's Daewoo International Corporation is investing $ 22 million in the expansion of production at two textile factories in Uzbekistan, the representative of the "Uzbekyengilsanoat" (Uzbeklegprom) SJC told Trend. The memorandum of understanding on the expansion and modernization of existing production at the Daewoo Textile Ferghana and Daewoo Textile Bukhara was signed between the "Uzbeklegprom" SJC and Daewoo International within the framework of the Uzbek-Korean business forum held last week. In accordance with the memorandum, Daewoo Textile Ferghana and Daewoo Textile Bukhara will invest $12 million of its own funds in 2014-2015 to increase the spinning capacity up to 4,000 tonnes, and in 2016-2017 will send another $10 million for the modernization and expansion of the facilities. The company's representative said that in 2013, Daewoo International had invested over $3 million in yarn production in Ferghana and Bukhara for the purchase of new equipment to increase the volume and improve the quality of produced products. In 2013, the amount of sales of Daewoo Textile Ferghana totaled $107 million, Daewoo Textile Bukhara - $ 44 million. It is expected that as a result of modernization of the enterprises the amount of sales of the two companies will increase up to $170 million in 2016, and $300 million by 2020. In 1998, Daewoo International commissioned Daewoo textile Fergana factory in the Ferghana region worth about $60 million with absolute Korean capital, and in 2007 - bought "Ferghana Textile" Ltd. at $68 million with investment commitments in the amount of $16 million. In March 2008, Daewoo International acquired the "Bukharateks" JSC spinning and weaving factory which is the second textile enterprises of its capacity in Uzbekistan. The deal amounted to about $ 5.4 million. Furthermore, the Korean company has pledged to invest in the modernization of the Uzbek enterprise $47.5 million. The design capacity of the enterprise now processes 19,000 tonnes of cotton fiber and 16,000 tonnes of yarns per year. Edited by CN Follow us on Twitter @TRENDNewsAgency