Uzbek to supply textiles products worth $70mn to Korea until end 2018

Uzbekengilsanoat delegation during its meeting with the leaders of the major Korean trading companies Posco Daewoo, Color Paradise, Solsang International Corp, Ratel E & T Co., Ltd., Korea Factory, as well as the Lotte Mart retail network reached a relevant agreement where it will supply textile products worth $70million to South Korea until the end of 2018. Uzbekistan is the world’s fifth largest cotton producer.

During the meeting with the leadership of the Korean International Trade Association (KITA) and the national electronic trading platform (KTNET), agreements on joint activities to promote Uzbek textile products in Korea in 2017-2018 through the electronic trading platform KOREA Trade, as well as on providing services through representations of Uzbek companies in Korea or Korean importers and transport companies for electronic customs clearance were reached.

Korean businessmen especially liked the dyed and melange yarn, terry and hosiery of the group of companies Uztex, Osborne Textile, as well as knitted and denim products of Uzbek brands Bofanda and Bonito, reported the press center which covers the visit of the President of Uzbekistan Shavkat Mirziyoyev to South Korea.

The Uzbek leader has arrived in Seoul, the capital of South Korea, on a state visit at the invitation of the country’s President Mun Zhe Ying on November 22.

Since the beginning of the year, various textile semi-finished and other products worth $23.4 million were exported to the Korean market. Meanwhile, a successful supply of knitted goods to the Lotte Mart retail networks, dyed and mélange yarn for manufacturers of knitted goods from Korea was launched this year.

Uzbekistan is expected to achieve full processing of cotton fiber in 2021. By 2020, the capacity of local enterprises will ensure the full processing of cotton produced in Uzbekistan, which can lead to a significant decrease in the export supplies of this crop. Only in 2017, the country intends to bring internal processing of cotton fiber to 70 percent.

At the same time, by 2021 the production of textile and clothing and knitted products will increase by 2.2 times compared to 2016, including ready-made fabrics – 2.7 times, knitted fabrics – 3 times, knitted goods – 3.4 times, hosiery – 3.7 times. It is planned to increase the export of products by 2 times.

One of the policy priorities of Uzbekistan, the world’s fifth-largest cotton exporter, is further development of its textile industry. Annually, the country grows about 3.5 million tons of raw cotton, produces 1.1 million tons of cotton fiber.

Uzbekistan takes consistent steps to increase the volume of cotton fiber processing. In particular, it is planned to create 112 modern, high-tech industrial factories, expand, modernize and technologically upgrade 20 operating capacities. All this will increase the export potential of the industry up to $2.5 billion a year and create more than 25,000 jobs.