Transcript Уважаемые Дамы и Господа!
“O’zbekyengilsanoat”
Textile industry of Uzbekistan: potential to rise and opportunities to invest
State Joint-Stock Company «O’zbekyengilsanoat»
1
“O’zbekyengilsanoat”
Today’s textile industry leaders in the world are the countries where production factors allows to minimize cost price.
State Joint-Stock Company «O’zbekyengilsanoat»
2
“O’zbekyengilsanoat” Cotton producers such as Uzbekistan, India, Brazil possess huge potential for further development of their textile industry Though Bangladesh and Vietnam have been emerging as competing textile economies, they depend on imported raw cotton.
State Joint-Stock Company «O’zbekyengilsanoat»
3
“O’zbekyengilsanoat”
Great Silk Road to Europe which passed by Uzbekistan played its important role for development cotton and silk traditions in Uzbekistan
Europe Japan Uzbekistan State Joint-Stock Company «O’zbekyengilsanoat»
4
“O’zbekyengilsanoat”
Factors of competitiveness
• Cotton fiber production - 1,1 + mln. tons • Yarn production – 360 + thousand tons • 21% price reduction of the cotton purchase • Low energy cost at US$ 0,04/kVt • Skilled labor resources at US$ 200/month • Domestic market of 28,+ mln. population • CIS market of US$ 6,0 bln. in free trade regime
State Joint-Stock Company «O’zbekyengilsanoat»
5
“O’zbekyengilsanoat”
Growth rate in 2010
• Textile/cloth production in value - 150% • Yarn production – 131% • Garments – 173% • Knitted fabric – 210% • Hosiery products – 246% • Exports – 156%
State Joint-Stock Company «O’zbekyengilsanoat»
6
“O’zbekyengilsanoat”
Factors 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.
State Joint-Stock Company «O’zbekyengilsanoat»
7
“O’zbekyengilsanoat”
Program for developing textile industry in 2011-2015 № items
1 Cotton yarn 2 Woven fabric 3 Knitted fabric 4 Garments
Total unit
th.t
mln.sq.m.
th.t mln. pcs.
new capacities to be installed
342,6 266,4 83,4 366,3
total amount of projects ($ mln.)
733,2 589,7 151,4 193,5
$ 1,700 Bln.
more than
55 projects
including vertically integrated textile units are foreseen in all regions of Uzbekistan
State Joint-Stock Company «O’zbekyengilsanoat»
8 8
“O’zbekyengilsanoat”
Raw silk production, tons
1000 900 800 700 600 500 400 300 200 100 0 685,1 2006 749,3 2007 770,5 2008 780 2009 940 2010 State Joint-Stock Company «O’zbekyengilsanoat»
9
“O’zbekyengilsanoat”
Export by countries (2010)
Egypt 1% ЕU 18% China 1% Korea 6% Countries Turkey 22% Sauth Korea China other countries 6% Russia Egypt Turkey other countries ЕU Russia 46%
State Joint-Stock Company «O’zbekyengilsanoat»
10
“O’zbekyengilsanoat”
Investment Projects support
• Loans provided by Foreign banks International Finance Institutions, recently established UzOmanCapital Investment company; • Co financing (to charter capital) from Uzbek Banks; • Facilities (buildings) provided at Zero sale cost or deferred payment schedule.
State Joint-Stock Company «O’zbekyengilsanoat»
11
“O’zbekyengilsanoat”
Tax incentives
producers of hosiery & garment are exempted from all taxes (except VAT); textile exporters are exempted from property tax; 7 years tax holiday for foreign investors to textile industry;
State Joint-Stock Company «O’zbekyengilsanoat»
12
“O’zbekyengilsanoat”
Custom incentives
100% exemption from custom payments on technological equipment; 100% exemption from custom payments on raw materials and accessories not produced in Uzbekistan (synthetic fiber, fabric, etc);
State Joint-Stock Company «O’zbekyengilsanoat»
13
“O’zbekyengilsanoat”
Our target investors
• • • • Financial capital.
Know-how in modern technologies.
International management (Brand).
Distributions channels and access to international markets.
State Joint-Stock Company «O’zbekyengilsanoat»
14
“O’zbekyengilsanoat”
Recent Projects with Foreign partners
Daewoo-Bukhara-Textile: Partner company – “Daewoo International” Investment - US$ 52.5 mln.
Financing – 100% FDI Start – November 2009 Facility – at deferred payment for 10 years Kokand Asaka Textile: Partner company – TMS Co, Korea Investment - US$ 8,5 mln.
Production – 26,0 mln. pairs of hosiery 2’000 mt of dyed yarn Start – October 2010 Financing – 80% Asaka bank Indorama-Kokand-Textile: Partner company – Indorama, Singapore Investment - US$ 55 mln.
Production – 18’000 mt of compact yarn Start – July 2011 (est.) Financing – 76% FDI, 24% - National Bank Facility – building at ZERO cost
State Joint-Stock Company «O’zbekyengilsanoat»
15
“O’zbekyengilsanoat”
Recent Projects with Foreign partners
TTG-Tashkent: Partner company – TTG, Korea Investment - US$ 50,0 mln.
Financing – 100% FDI Production - 6’000 of cotton yarn 7,5 mln. sq.m fabric 5 mln. pieces of garment Start – November 2011 (est) Facility – Green Field at Zero cost BF-Textile: Partner company – BO Group, Turkey Investment - US$ 22,0 mln.
Financing – 40% FDI, 60% loan from Islam Development bank Production - 6’000 of cotton yarn 4’000 mt knitted fabric Start – September 2011 (est) Facility – deferred payment for 4 years
State Joint-Stock Company «O’zbekyengilsanoat»
16
“O’zbekyengilsanoat”
Conclusions
• World 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 CIS market (abt US$6,2 billion) - free trade zone; • Growing local market.
• Strategy - to produce not only yarn and grey fabric, but also garment and hosiery.
State Joint-Stock Company «O’zbekyengilsanoat»
17
“O’zbekyengilsanoat”
Our main partners State Joint-Stock Company «O’zbekyengilsanoat»
18
“O’zbekyengilsanoat”
Textile industry of Uzbekistan investment projects proposals
State Joint-Stock Company «O’zbekyengilsanoat»
19
“O’zbekyengilsanoat”
Investment project proposal # 2 (spinning and weaving): JSC “Kitop ip yigiruv” Address:
Kitop city, Kashkadarya region;
Project capacity: 6
thousand tons of yarn
Total 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, gas Providing 100% with local raw materials.
Partly state owned, not operational Proposed for establishment of new spinning and weaving production State Joint-Stock Company «O’zbekyengilsanoat»
20
“O’zbekyengilsanoat”
Investment project proposal # 3 (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 State Joint-Stock Company «O’zbekyengilsanoat»
21
“O’zbekyengilsanoat”
Investment project proposal #1 (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 year Grey Fabric – 10 mln sq.m.
Proposal to enlarge spinning and weaving capacity State Joint-Stock Company «O’zbekyengilsanoat»
22
“O’zbekyengilsanoat”
Investment project proposal # 4 (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 owned Proposed as Green Field Project with establishment of new production
Local Financing available
State Joint-Stock Company «O’zbekyengilsanoat»
23
“O’zbekyengilsanoat”
Investment project proposal # 6 (textile complex): Organization of integrated mill (unfinished construction) Address:
Kharezm 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 owned Proposed for establishment of new production State Joint-Stock Company «O’zbekyengilsanoat»
24
“O’zbekyengilsanoat”
Investment project proposal # 7 (textile complex): Organization of textile mill (JSC “Yangiariq”) Address:
Kharezm Region, Yangiariq city;
Buildings, constructions and utilities:
Total area of the enterprise – 54 000 sq. m.
Production (covered) area – 17 000 sq. m.
Utility units available – electricity, water, gas
Logistics:
Highway – 0.5 km. Railway – 25 km.
Airport – 50 km.
State owned Proposed for establishment of new production State Joint-Stock Company «O’zbekyengilsanoat»
25
“O’zbekyengilsanoat”
Investment project proposal # 8 (textile complex): Organization of textile mill (“Urgut Oltin Tex” LLC) Address:
Samarkand Region, Urgut city;
Buildings, constructions and utilities:
Total area of the enterprise – 20 000 sq. m.
Production (covered) area – 14 000 sq. m.
Utility units available – electricity, water, gas
Logistics:
Highway – 0.02 km. Railway – 25 km.
Airport – 20 km.
State owned Proposed for establishment of new production State Joint-Stock Company «O’zbekyengilsanoat»
26
“O’zbekyengilsanoat”
Investment project proposal # 9 (textile complex): “Bobur” Joint Stock Company Address:
Andijan city, 73 Bobur avenue;
Buildings, constructions and utilities:
Total area of the enterprise – 66.5 hectares Production (covered) area – 41 700 sq. m.
Utility units available – electricity, water, gas, sewage
Logistics:
Highway – 0.5 km. Railway – 2 km.
Airport – 3 km.
State owned Proposed for establishment of new integrated production State Joint-Stock Company «O’zbekyengilsanoat»
27
“O’zbekyengilsanoat”
Investment project proposal # 12 (sewing production): JSC “Sanam” Address:
Kashkadarya Region, Yakkabog city;
Buildings, constructions and utilities:
Total area of the enterprise – 12 500 sq. m.
Production (covered) area – 6 700 sq. m.
Utility units available – electricity, water, gas, sewage
Logistics:
Highway – 10 km. Railway – 40 km.
Airport – 100 km.
Partly state owned, not operational Proposed for establishment of new production State Joint-Stock Company «O’zbekyengilsanoat»
28
“O’zbekyengilsanoat”
Investment project proposal # 12 (spinning production): JSC “Semurg”
Address:, Andijan city, UZBEKISTAN
Buildings, constructions and utilities:
Total area of the enterprise – 3.4 hecs Production (covered) area – 25 500 sq. m.
Utility units available – electricity, water, gas, sewage
Logistics:
Highway – 0.2 km. Railway – 3.0 km.
Airport – 30 km.
«And Nizomiyt» LLC (21,66 %), Uzbek citizens.
State Joint-Stock Company «O’zbekyengilsanoat»
29
“O’zbekyengilsanoat”
Thank you And let’s make profit together!
State Joint-Stock Company “O’zbekyengilsanoat ” 45 Babur Str., Tashkent, 100100, Uzbekistan Tel: +998 (71) 239-17-11 Fax: +998 (71) 253-93-58 http://www.legprom.uz
E-mail: [email protected]
State Joint-Stock Company «O’zbekyengilsanoat»
30