Organization of textile complex

Project name

Organization of textile complex

Objective of the project

Creation of a textile complex from yarn processing to finished products (denim products)

Textile

Project Implementation Schedule

Implementation term 13-16 months, according to the attracted foreign investment.

Stage 1. 2-3 months for:conclusion of an agreement, legal registration, allocation of a land plot, preparation of project documentation, coordination with a serving commercial bank.Stage 2. 6-7 months for:construction of an industrial building, supply of engineering and communication networks, preparation of an industrial site, conclusion of a contract for the supply of equipment.Stage 3. 5-6 months for:

equipment supply, customs clearance of equipment and imported materials, installation of equipment, commissioning, formation of the management and personnel of the enterprise, personnel training, organization of work on ensuring the initial financial and circulating assets of the enterprise.

All regions of the republic, including FEZ “Hazarasp”, “Urgut”, “Gijduvan”, “Kokand” (a specific place will be determined on the basis of consideration and study by the initiator of the project location and negotiations)

Information about project participants:

Co-executor (supervising sectoral body/ministry/agency)

–

37,7 million USD

Expected sources of financing:

–

Loans

–

37,7 million USD.

Composition of main costs

– construction and installation work – 7,0 million USD

– basic equipment (including installation supervision and component parts, and transportation) – 20,6 million USD

– raw materials for the launch period (3-6 months) – 6,1 USD

– others – 4,0 million USD

15 %

Expected payback period

4,5 years

Cash flows

It will be determined on the basis of development of a business plan/feasibility study of the project (annual net profit is 5 million dollars)

Denim

From 14,0 million sq.m. of fabric up to 6,0 mln. denim products

Resolving organizational issues, presenting necessary privileges and preferences, etc.

Project proposal

Tashkent city, A.Avloniy street 20A (info@uzts.uz)

(+99871) 202-22-44

2002

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–

Undefined

Date of birth

Undefined

Undefined

Undefined

Total jobs: 300 units

Undefined

Not available.

The required area:

– total area: 2,5 hectares

– production area: 1 hectares

Existing infrastructure

All necessary communication networks will be provided, including:

– electrical networks;

– water supply network;

– natural gas networks (if required);

– sewer networks;

– roads;

Telephony, Internet Fiber

Main production building;

warehouse;

repair room;

administrative premises;

mini hotel for foreign technologists (if required);

water pumping tower (if required);

transformer substation;

fencing of the territory.

Not available. Development is required

Undefined

Undefined

Undefined

Denim products

From 14,0 million sq.m. of fabric up to 6,0 mln. denim products

40%

60%

fabric – 6-7 USD for 1 square m.;

denim products – 15-17 USD for 1 unit.

It will be determined on the basis of a business plan/feasibility study.

Provision with raw materials

Provided by 100%

In the republic there are more than 7000 textile enterprises, the annual capacity of which is:

Cotton yarn – 650 thousand tons;

Cotton fabric – 425 million square meters;

Knitted fabric – 140.7 thousand tons;

Knitwear – 660 million pieces;

Hosiery products – 132 million pairs.

Based on the importance of the textile industry for the economic development of the country, Uzbekistan is implementing a Program of measures for further development of the textile-garment and knitwear industry for 2017-2019. According to the Program, by 2020 the production of cotton yarn is planned to be increased by 2.5 times, finished fabrics – by 2.8 times, silk fabrics – by 2.7 times, nonwoven materials – by 1.5 times, knitted fabric – by 2,7 times. It is planned to increase the output of garments by 3.2 times, knitwear by 2.1 times, the production of raw silk by 2.1 times.

Undefined

Mostly denim products are purchased from imports. In the republic there are a small number of manufacturers of denim products such as JV LLC AFROSIYOB JEANS, B.S.H Group.

Today “Uztuqimachiliksanoat” Association unites more than 1400 major manufacturers in the textile market in Uzbekistan, which account for a substantial part of light industry production, in particular, processing 706 thousand tons of cotton fiber and producing 510 million square meters of fabrics of various assortment, including:

       knitted fabric – 89 enterprises;

       knitwear – 495 enterprises;

       garments – 354 enterprises;

       hosiery – 54 enterprises;

textile haberdashery – 20 enterprises.

All categories of consumers

All categories of consumers

Pricing strategy

Established on the basis of studying the internal and external market

The cost structure of the final product

It will be clarified on the basis of development of a business plan/feasibility study of the project, taking into account market research. At the same time, the expected profitability of the project is 15% calculated.

Availability of patents, licenses, certificates in accordance with current legislation

Not available

Availability of a formed base of potential customers with a confirmed willingness to purchase products

Undefined

Undefined

Is being developed

Enterprises of the textile industry – members of “Uztuqimachiliksanoat” Association are exempt from January 1, 2021 from paying customs duties (except for customs clearance fees) for imported cotton, artificial and synthetic fiber, wool, raw materials and other materials necessary for production of textiles and not produced in the republic, according to the lists approved in the prescribed manner.

In the case of a project implementation in the FEZ, the benefits in the FEZ are granted for a period from 3 to 10 years depending on the amount of attracted investments, including in the equivalent (USD):

from 300 thousand dollars to 3 million dollars – for a period of 3 years;

from 3 million dollars to 5 million dollars – for a period of 5 years;

from 5 million dollars to 10 million dollars – for a period of 7 years;

from 10 million dollars and above – for a period of 10 years, with application of the profit tax rate and the single tax payment in the amount of 50% below the current rates for the next 5 years.

– The risk of non-compliance with the established parameters of the feasibility study of the project and/or the Business Plan regarding the planned receipt of revenue;

– the risk of an increase in construction time when the project is not timely financed;

– the risk associated with unforeseen political and economic phenomena in the global economy, changes in the world price situation for raw materials, materials and components, as well as finished products.

Type of equipment

Requires supply of manufacturers of textile equipment of world brands

Country of origin

Germany, Spain, Japan, France, Turkey, Switzerland, India, China

Productivity

Productivity per year – from 14.0 million sq.m. fabrics up to 6.0 mln. denim products

Cost

20,6 million USD

Power usage

Depending on the chosen production technology

Installed power

Not available

Overall dimensions of the equipment

Undefined

Main equipment weight

Undefined

Main equipment units (lines)

Undefined

Working hours per year

4800-5000 hours

Work cycle

16 hours a day, 2 shifts

The frequency of scheduled preventive maintenance (SPM)

Once a year, no more than 15-20 days a year

The number of people involved in production process and their functions

Total jobs:  300 units