Daewoo International Corporation, a South Korean company has part of its expansion plan has decided to make an investment to the tune of $22 million to expand production capacities of two textile enterprises Daewoo Textile Fergana and Daewoo Textile Bukhara in Uzbekistan.

The relevant Memorandum of Understanding (MoU) was signed between Uzbekengilsanoat State Joint Stock Company and Daewoo International Corporation on expansion and modernization of production capacities of the Daewoo Textile Fergana and Daewoo Textile Bukhara.

Daewoo Textile Fergana and Daewoo Textile Bukhara will invest $12 million from their own resources in 2014-2015 to expand their spinning capacities by 4,000 tons. The companies will invest another $10 million to modernize and expand their capacities in 2016-2017.

Some $3 million were invested in spinning production in Fergana and Bukhara to purchase new spinning equipment for improving the quality and volume of produced goods.

Daewoo Textile Fergana was founded in 1996 by Daewoo International Corporation which invested about $100 million in development of textile production. It specializes in textile production, in particular cotton fabric and yarn. The textile plant is located in the south of Fergana valley in the Eastern Uzbekistan.

While, Daewoo Textile Bukhara is a leading company in textile field was launched by Daewoo International Corporation in Bukhara in 2008. Yarn produced by Daewoo Textile Bukhara is exported to many countries of the world.

In 2013, Daewoo Textile Fergana produced goods for $107 million and Daewoo Textile Bukhara worth $44 million.

With the expansion of production capacities of the two textile companies, they plan to increase their production volume to $170 million by 2016 and to $300 million by 2020.