LT Textile Cooperatief UA, a Dutch textile firm, has started the construction of a large textile complex spread over 30 hectares in Kashkadarya region of Uzbekistan, according to media reports.
The construction of the textile complex comes on the back of an investment agreement between the ministry of foreign economic relations, investments and trade of Uzbekistan and LT Textile Cooperatief signed last October.
The Dutch company will invest at least $55 million in the textile enterprise in 2015-2016 in accordance with this agreement, including $17 million of its own funds, $38 million from foreign banks.
The new complex will have a capacity to process 20,000 metric tonnes of cotton fibre and produce 15,000 metric tonnes of cotton and mixed yarn per year.
Under the agreement, the enterprise will be provided with modern high-tech and energy-efficient equipment. The complex is targeted to be commissioned in November 2016 and will start operating to full capacity in Q1 of 2017. Exports will comprise 80 per cent of the enterprise’s products.
Uzbekistan is the sixth producer and third largest exporter of cotton fibre in the world with a production of 1.2 million metric tonnes of cotton fibre.