Uzbek President asks textile and apparel industry to localize 50 product types
That is to say, a piece of good news came from Central Asia yesterday: the rise of Central Asia, Germany’s Monforts has just provided seven sets of finishing equipment production lines to this country. Uzbek President Shavkat Mirziyoyev has just asked the country’s textile and clothing industry association to localize at least 50 products and pledged to allocate $100 million to commercial banks’ budget for such projects. He also pledged $50 million for carpet production while chairing a meeting on domestic industry development.
The meeting pointed out that the textile industry should be developed with new vitality. A program to export more than $5 billion worth of industrial products will be launched next year. The state of Uzbekistan provides 70% of shipping costs for fabrics and knitwear exported to European countries, Turkey, Egypt and Morocco.
President Mirziyoyev said that due to the current difficulties in the world, disruptions related to transportation and logistics are affecting small-scale production units in Uzbekistan. Output at the country’s 65 large companies also fell.
In the first nine months of this year, the country’s industrial production increased by 5.3%. Small-scale production is also increasing in the country, a government news agency said.
Although funds have been allocated, infrastructure is yet to be built in 118 industrial zones and exporters are not taking full advantage of the EU’s Generalized System of Preferences Plus scheme (GSP+).
Europe now accounts for just 6% of Uzbekistan’s exports of textiles, 3% of electronics and 1% of silk and food products.
The meeting discussed these and other shortcomings, as well as priorities for next year. President Mirziyoyev said: “Industry leaders should look for opportunities in this difficult situation, draw on internal reserves, put forward suggestions and initiatives.”
The president also directed authorities to provide guaranteed raw materials to manufacturers of home appliances, carpets and furniture to help businesses that are unable to operate at full capacity.