Presentation on theme: "Today leaders in the world textile industry are the countries where production factors allows to minimize cost price. With other things being equal, European."— Presentation transcript:
1Textile industry of Uzbekistan: potential to rise and opportunities for investment
2Today leaders in the world textile industry are the countries where production factors allows to minimize cost price.With other things being equal, European countries, USA, as well as South Korea and Turkey are already facing difficulties to compete against developing countries in textile production. Among developing countries such cotton manufacturers as Uzbekistan, Pakistan and India possess huge potential for further development of their textile industry.
3Advantages of Uzbekistan: Qualified labor resources, traditions in textile productions;Government support, incentives and Anti crisis Program, favorable investment climateAvailability of vast stocks of raw materials (cotton, yarn);Low-cost energy resources (gas, electricity), infrastructure;Access to big international (CIS, EU) and local markets.UZBEKISTAN - world recognized Center of textile production
4Factors for further development of textile sector in Uzbekistan: Relatively low capital intensity of textile sector reduces barriers to an involvement of small business enterprises, promotes creation of the competitive environment;High level of interlinking to other branches of economy: agriculture, financial sector, logistics, etc.;Relatively high level of added value provides faster capital turnover, creates conditions for its accumulation;Visible international character of the industry, including share in foreign trade, investments.
5STRUCTURE OF THE STATE COMPANY “O’zbekyengilsanoat” SJSC “O’zbekyengilsanoatTextilesectorApparelsectorKnittingsectorSilksectorInfrastructureenterprisesToday SJSC “O’zbekyengilsanoat” consolidates 175 enterprises.
6Uzbekistan textile industry Production capacity of textile enterprisesCotton yarn – 300 thousand tons;Weaved fabric – 111,7 mln. sq.m;Knitted fabric - 59,0 thousand tons;Hosiery – 14,0 mln. pare;Knitted products – 197,2 mln. pieces.Row silk – 1,4 thousand tons;
7Missions of the Company Supporting steady growth of the industry;Reconstruction,technical and technological updating of enterprises, launching new capacities, attracting foreign investments;Covering local consumption (27 mln. population);Increasing export potential.
8Main prioritiesIncrease in production of cotton intense products (terry toweling, home textiles, etc.). Development of modern technologies in productions of blended and technical fabrics;Optimization of production cost, through usage of capacities, favorable prices for raw materials, spare parts for equipment, energy sources;Implementation of investment projects to increase production of finished products (as well knitted and sewed products) in accordance with requirements in the world and internal markets;Further improvement of business climate and investment environment. To promote shifting to Uzbekistan production capacities from West and East Europe, Turkey subject to keep their marketing channels;Realization of promotion programs, creation of dealer’s structures, logistics and access issues;Support and development of «Uzbek textiles» and “Made in Uzbekistan” brands.
9Latest AchievementsExisting capacities on cotton processing more than 300 thousand tonsAnnual export of textile and apparel more than 400 million dollars;Foreign investments attracted - above 1,2 billion dollars (90 million dollars in 2009);More than 100 joint and foreign enterprises;In new enterprises, including modern spinning facilities (Daewoo Textile Bukhara, Plastex, Vobkent Textile and others with annual capacities of 43 thousand tons of yarn) have been launched
10Share of main foreign investments to Textile Industry
11Main preferences and privileges given to textile enterprises: producers of hosiery & ready garment are absolved from all taxes (excluding VAT);textile exporters (more than 80% to be exported) are absolved from property tax.absolving from customs payments for import of technological equipment and spare parts, as well as materials which are not produced in Uzbekistan;15% discount from world cotton price, additional 5 % discount provided subject of whole reprocessing cotton fiber up-to ready goods;the right for purchase cotton yarn in domestic market at zero VAT.
12Uzbekistan requires investors who possess: Financial capital.Know-how (modern technologies).International management (brand).Distributions channels and access to international markets.
13Offered investments projects to realization with the Italian companies on release: Finished cotton fabrics;Finished mixed fabrics;Finished silk fabrics;Apparels;Knitwear's;Hosiery products.
14ConclusionsWorld textile production will move to the regions with relatively low production costs. Uzbekistan offers most favorable conditions to absorb foreign investments from countries - leading textile centers. Proximity of a huge Russian market (abt 4,2 billion dollars) with whom we have free trade zone as well as growing internal market (with population of 27 million) made investments to Uzbekistan even more attractive.Our strategy - to produce not only yarn and grey fabric, but also finished goods in wider assortment.«O’zbekengilsanoat» plays a role of vertically integrated structure: on the one hand the divisions responsible for marketing, logistic and market access issues, financing, design and technologies, from other hand – spinning and weaving enterprises as well as flexible small and private enterprises on finished products.
17A wide range of high quality cotton yarn (Ne7/1-Ne40/1); SJSC “Uzbekyengilsanoat” offers following type of products manufactured by local textile companies:A wide range of high quality cotton yarn (Ne7/1-Ne40/1);A wide range of cloths 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.