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$ 340 MILLION INVEST IN COTTON-TEXTILE PRODUCTION

The decision of the Cabinet of Ministers of August 8, 2018 No. 632 "On measures to create modern cotton-textile production by the company Indorama (Singapore) in the Republic of Uzbekistan" was promulgated.

According to the resolution, the interested organizations, as well as the Singapore company Indorama (hereinafter referred to as the investor), based on the existing capacities of the JV Indorama Kokand Textiles LLC and the legal entity created by the investor, the operating company (hereinafter - the operating company), will implement a project to organize a modern cotton- textile production (hereinafter referred to as the project) with attraction in 2019-2023. foreign direct investment in the amount of:

US $ 225 million for the purpose of growing raw cotton, maize, or another crop based on crop rotation;

USD 115 million for the organization of deep processing of raw cotton and production of cotton yarn during the implementation of the second phase of the project.

At the first stage, the khokimiyats of the Kashkadarya and Syrdarya regions, upon the request of the investor, until November 1, 2018, provide the provision in the Kasbinsk, Nishan, Sardoba and Akaltinsky districts:

40 thousand hectares of irrigated land operating company for the cultivation of raw cotton and other crops;

10 thousand hectares of land for the cultivation of raw cotton farmers to conclude with the operating company direct contracts for contracting for the cultivation and supply of raw cotton.

In the second stage, khokimiyats of Ferghana and Jizzakh regions will consider the offers of the operating company for the provision of land for the production of raw cotton and other types of crops.

It has been established that the operating company is the organizer of the cotton and textile production and is subject to clauses 2, 7 and 13 of the Resolution of the Cabinet of Ministers of 25.01.2018 No. 53 "On measures to introduce modern forms of organization of cotton and textile production".

The cotton seeds obtained are processed by the operating company independently or sold to fat-and-oil enterprises on a give-and-in basis, followed by the sale of fat and oil products through exchange trades, and waste from the processing of cottonseed (husk and husk) seeds - by direct contracts, primarily to farms, as well as to other domestic consumers.

Additional products (lint, ulyuk and others) are sold by the operating company to domestic consumers through exchange trades. Cotton fiber and technical seeds produced within the cotton-textile cluster should be used exclusively at the enterprises of the republic for production purposes.

The State Committee for Investments and the investor will conclude an agreement, stipulating in it without fail:

introduction of modern mechanized and scientific methods to ensure the growth of yield of raw cotton;

creation of at least 1,500 new jobs;

production of raw cotton according to BCI standards ("For more environmentally friendly cotton"), attracting world brands to organize the production of finished products in the republic, or purchasing finished products from local producers in quantities associated with the production of raw cotton on the lands provided by the operating company.