The past week has become a landmark one for the experts and professionals in light industry. For the eighth time Tashkent has hosted “Textile Industry - Textile Expo Uzbekistan 2011” international exhibition that brought together more than forty major companies from Belarus, Germany, India, China, Latvia, Poland, Russia, Turkey and other countries. This year, the exhibition attracted a record number of participants and has increased the exhibition area to 20%. As far as the entry list was concerned, most of the area - 80%, like in previous years, - was taken up by Uzbekistan’s leading manufacturers and exporters, leaving but the merely 20% of space for foreign participants.

Such high activity of domestic companies is suggestive of successes made in the development of light industry, of the encouragement for deeper processing of cotton fiber and production of modern competitive textile goods. The progress made by the industry in Uzbekistan has proved a noteworthy incentive for overseas companies to look to establish partnership ties with local producers concerning the provision with modern technological equipment, high-quality chemicals and dyestuff, fittings, yarns and accessories, and expand their presence in the consumer market.

According to participants, Textile Expo Uzbekistan 2011 marked an important stage in the overall process of rapid progress and modernization of textile industry of Uzbekistan, focused on the production of highly marketable goods using local raw materials and most advanced technological developments and innovative manufacturing.

Any industrial development is based on several key factors, where the main one is aligned and well elaborated strategic program, which orients the industry on the prospects. In early 2009, the Government of Uzbekistan has defined new priorities for light industry, with adopting a package of measures aimed at an increase and expand the range of non-food consumer goods production in 2009-2011. The mission gave light industry strategic goals - to expand production capacities and to develop new products. A logical continuation of this policy is a Program of industrial development in Uzbekistan on 2011-2015, where to light industry’s development was paid particular attention. In particular, by 2015 the volume of production in the sector should grow to 7.8 trillion soums from 3.6 trillion soums in 2010, while the share of industry in total industrial output should rise to 15.6%. Also, by 2015, it is scheduled to increase the production of cotton yarn and clothing 2.6 times, finished fabrics 3.2 times, knitted outputs 2.8 times, hosiery 8 times.

According to experts, to achieve the determined parameters the industry will have to develop several large investment projects, fulfill large-scale modernization of existing facilities of cotton processing, and improve product quality in accordance with international standards. Now, the process is actively gathering momentum. In general, within five years, SJSC Uzbekyengilsanoat, which coordinates in the country the development of light industry and brings together 265 companies, will implement about 55 projects totaling over $1.7 billion.

Today the products of Uzbekyengilsanoat’s enterprises are widely known outside the country, because they are being exported to more than 40 countries throughout Europe, Asia, North and South America. The main importers of Uzbek light industry’s outputs are the CIS countries (40%), followed by the European Union (18.8%), China (16.3%), Turkey (15.3%), South Korea (4.9%) and other countries (4.7%). Just by the end of 2010, the growth of exports amounted to 160%, compared to 2009. This year, significant increase in exports is expected, also due to the development of marketing services and the promotion of domestic products on world markets, rendered by the company’s 40 dealerships.

The increase in exports is one of the most important indicators of sustainable development and high competitiveness of the industry. This is primarily because the demand for knitted products from pure cotton is growing steadily. Therefore, domestic enterprises are constantly working to improve the quality and to raise the capacity of finished goods’ production. Each year, the assortment of goods is replenished by more than 20 new items, which are in constant demand on foreign markets.

Experts state, that the introduction of highly productive, advanced technologies has increased the export of Uzbekyengilsanoat’s enterprises 110 times, compared to the first years of independence.

Big tasks regarding export increase are put on Design Center, set up in mid-summer and specialized in development of popular fashion clothing in accordance with national traditions and climatic conditions, as well as in promoting domestic producers to international markets.

In early 2011 the country has made new steps for further sustainable development of the domestic textile and garment-knitwear industry, to strengthen the motivation of deeper processing of cotton fiber production and organization of modern competitive textile products. In particular, a range of preferences and incentives for the enterprises of the industry have been extended.

Thus, businesses of textile industry, that sell for hard currency more than 80% of their products including semi-finished products - yarn, fabrics, knitted fabrics and cotton waste - are exempted from property tax until January 1, 2016. Also, enterprises of SJSC Uzbekyengilsanoat are allowed to buy for hard currency, with charging VAT on zero-rate, textile semi-finished products in the domestic market at prices not lower than world prices prevailing at the time of the contract, on conditions that not less than 80% of the products made from these semi-processed goods will be exported.

In addition, the country has extended the exemption from payment of import customs duties on chemicals, dyes, fittings and accessories, as well as other support materials not produced in the country, which are imported by the enterprises of SJSC Uzbekyengilsanoat.

During the years of independence, the light industry of Uzbekistan has drawn $1.8 billion of foreign investments and has developed more than 150 different projects. Till the end of 2016 it’s scheduled to fulfill about 100 new projects, worth more than $1.6 billion.

One of the most notable future projects is the production of textile machinery, together with well-known Swiss engineering company Maschinenfabrik Rieter AG. This project is implemented under the agreement between Uzbekyengilsanoat and Maschinenfabrik Rieter AG, which provides the two companies with strategic partnership on modernization, technological re-equipment of the industry and gradual organization of the production of textile machineries on a part of manufacturing area of the liquidated production association Uzbektekstilmash. In particular, it is planned to start manufacturing in Uzbekistan belt, carding and ring spinning machines. To do this, in the country has been established a foreign company Rieter Uzbekistan. During 2011-2012 the Swiss company will invest in its development $2 million. The project will be implemented in three phases. The construction of buildings and installation of technological equipment will be completed during the first phase, in 2011. Then, in 2012, according to the plan, will start the production of tape and carding machines. In addition, during the second phase it is planned to build additional plants and to establish new equipment. In the third stage, in 2015, a metal processing shop will start its operation. Under the project Rieter Uzbekistan is freed, until 1 July 2015, from all taxes and mandatory contributions to the Republican Road Fund for core activities. In addition, the Swiss company has received for the same period exemption from income tax, customs duties on equipment, tools, machineries and other goods and materials not produced in Uzbekistan.

Among other notable projects, for launch in 2012, are two joint ventures on textile machinery production with German Terrot and Korean TMS. The works on the projects will begin next year. In particular, together with Terrot a production of knitting equipment will be created in Tashkent. It is planned that the plant will initially produce up to 50 pieces of equipment annually. Project costs $2 million. A joint venture with Korean TMS for the production of hosiery machines will be opened in Farghona region. According to preliminary calculations the plant will produce, annually, up to 100 pieces of equipment. The cost of the project will reach $3.5 million.

This year, we visited the country for the first time, in order to assess local market capacity, the potential of Uzbek enterprises, the quality of local raw materials and many other characteristics necessary for a successful business. I note that before the visit, we had heard positive feedbacks from representatives of European textile companies about tax and industrial policies in Uzbekistan.

Our company specializes mainly on trendy women's clothing. Although Didier Parakian hit the market just over 20 years ago - now it is a recognized world brand. This is evidenced by the fact that about 75% of our products we sell abroad and we are not going to stop. We are very interested in the Uzbek market, as it has the necessary conditions to promote the products. Now, we are in the process of determining the degree of our participation in it. Perhaps the company will find partners not only for the offtake of the products manufactured in France, but also for establishing here a production, and to buy raw materials. So, there are many possibilities, what is left is just to put them into practice.

Uzbekistan has created favorable conditions for foreign companies, which are investing in the real economy and industrial production. Our company is a vivid example of this. Uzbek-Singapore joint venture Indorama Kokand Textile has been established in July 2011 by Indorama Industry and the National Bank of Uzbekistan. The authorized capital of the new company amounted to $18 million. The new textile complex, with total area of ​​17.3 hectares, has become Uzbekistan’s one of the most advanced light industry enterprises specializing on the manufacture of cotton yarn of worsted spinning. Sound strategy for quality management and high performance of the machines allow to produce competitive products, demanded in foreign markets.

The equipment, mounted on the factory, meets all international safety and quality standards and has whole production chain from fiber to yarn. His delivery was handled by Swiss company Rieter - one of the world's manufacturers and suppliers of new generation of process equipment for making yarns from natural and synthetic fibers. The outputs of the enterprise are tested in a specialized laboratory, kitted with the latest technology. This allows to control the quality of the production process at all stages, including raw study.

Nowadays, nearly 95% of BF Textile Production’s goods are being exported to countries of Central Asia, Europe and Russia. The company was founded in 1995. While in the first year of production activity, we have exported products to $2.5 million, in 2010 this figure reached $22 million. This year, we plan to increase export to $40 million. Another important step in the development of the business is that next year we plan to start a new cotton yarn factory. After launching the factory, we will be able to produce goods ranging from cotton processing and up to tissues and finished products. Every day we produce 40-45 tons of knitted fabrics and 50,000 pieces of finished products. These facilities have helped to create over two thousand jobs, the number of which will only rise.

I note that such exhibitions are important because they give opportunity to experts and businessmen to get acquainted with new achievements and developments in the field of textile, knitting and apparel industries, to take key decisions on modernization and reconstruction of existing facilities, to ensure continuity and environmentally friendly manufacturing process.

Now, the company produces 19 tons of high quality yarn daily. Also, recently, we have launched the production of garments. Now we employ over 450 people. Constant attention to product quality through the introduction of modern technologies and the use of good raw materials allows Toshkayateksil to boost production. An important fact is that most of the products, 80%, is exported to Kazakhstan, Kyrgyzstan, Poland, Russia, Ukraine and to other countries. Opening of the trading house in Moscow is in our plans for the near future; it will allow to promote more actively the domestic products on the Russian and Ukrainian markets, as well as in Europe. In addition, the company is currently negotiating with Polish partners about signing the contract on the supply of goods. All this thanks to the system, created in Uzbekistan, to support industrial enterprises producing export-quality products.

In current economic conditions it is impossible to effectively move forward without implementing innovative technologies, which improve the quality of the products while reduce costs. Therefore in the development of textile enterprises, the exhibitions where companies from around the world demonstrate the industry’s novelty are of significant importance.

Producers of textiles and designers always need to learn and to exchange progressive experience with colleagues from other countries. Modern technology and materials, as well as exchange of ideas allow them to expand the horizons of their professional skills and abilities, and to be in a constant search for creating best models and patterns that could be interesting not only to local but also to foreign customers. In this regard, textile exhibitions, held in Uzbekistan, are good chances to achieve maximum effects in the shortest time.

Our company is engaged in manufacturing of knitted and corsetry, using raw materials from the world's leading producers. All products are certified and meet the international standard ISO 9001-2009. Today, Uzbekistan stands as one of the main suppliers of raw materials for the textile industry. Therefore, we hope to find here partners who can provide our production with quality raw materials. We also plan to explore the Uzbek market for the possibility of opening a joint venture for the production of textile products and creating a dealer network.

Tekhnokhim is Russia's largest operator in the market of color pigments and dyes for the textile industry. We have come to Uzbekistan for the first time and we hope to find reliable partners here. The textile industry of Uzbekistan is developing dynamically; it increases its potential and processing capacity. This was made possible through the use by Uzbek enterprises modern technology and components. That's why our company is entering the market of Uzbekistan. The company portfolio includes more than 2,000 chemical products that will help make the production of textile industry of your country even better and more competitive in foreign markets.

I am confident that this exhibition will assist in introducing new production technologies and materials into the fashion industry and textiles of Uzbekistan, and will become another connecting point for manufacturers and buyers, connoisseurs of fashion trends and their creators.

We take part in the exhibition for the first time, and for us it's a good chance for business development, because here have gathered the leading companies which are producing textile machinery, raw materials, fabrics and finished products.

Our company is a modern and dynamic company that specializes on the production of both textile and knitted products, using as raw material the best grades cotton grown in Uzbekistan. Our products conform to international quality standards. Recently, the company started new production - men's clothing. I think that the exhibition will help us to find new partners for its distribution, as well as to discuss export opportunities.

We pay great attention to the improvement of equipment. We try to follow novelties and modern technological solutions, to adapt them to our circumstances. This work achieves the result; after just two years the company has became one of the leaders of male and female underwear producers. In future plans is to enter the markets of Central Asian countries and Russia.