LT Textile Cooperatief U.A. to invest US$55 mn to set up modern textile plant in Uzbekistan

LT Textile Cooperatief U.A. (Netherlands) to set up modern textile plant in Karshi district of of Kashkadarya region in Uzbekistan, for which the company undertook liabilities to invest at least to the tune of US$ 55 million in 2015-2016, of which $17 million will be of the own resources of the Dutch company and $38 million would be taken as loans from foreign banks, without guarantee of the Government of Uzbekistan.

The Government of Uzbekistan issued a resolution “On measures on organization of modern textile plant in Karshi district of Kashkadarya region” on 31 October 2014.

The Government of Uzbekistan approved an investment agreement between the Ministry of Foreign Economic Relations, Investment and Trade of Uzbekistan and LT Textile Cooperatief U.A to provide specific obligations to the foreign investor for the modern high-textile production project, and has provided 30 hectares of land in Karshi district of Kashkadarya region.

The Dutch company is set to organize textile production and equip it with modern and high technology as well as energy saving equipment. It will also create service center to provide maintenance services to textile equipment.

According to the agreement, the Dutch company will commission production in November 2016. In the first quarter of 2017, the new textile plant will reach its designed capacity of processing 20,000 tonnes of cotton fibre and produce 15,000 tonnes of cotton and mixed yarn a year. The project is expected to create about 700 new jobs.

LT Textile Cooperatief U.A. will export at least 80% of produced goods and in 2017-18 it will organize production of cotton and mixed fabrics investing another US$5 million into production.

The company formed by LT Textile Cooperatief UA will get exemption from payment of custom duties at import of equipment and materials for creation of the plant. The Government of Uzbekistan will provide several preferences to enterprise till 1 January 2022.

Kashkadarya regional administration is entrusted to provide 30 hectare land in Karshi district to create textile capacities.