As a part of its expansion plans, South Korean company Daewoo International Corporation, has decided to pump in $22 million in two production capacities of Daewoo Textile Fergana and Daewoo Textile Bukhara in Uzbekistan. With the expansion of production capacities, they plan to increase their production volume to $170 million by 2016 and $300 million by 2020.
The relevant Memorandum of Understanding (MoU) was signed between Uzbekengilsanoat State Joint Stock Company and Daewoo International Corporation on expansion and modernization of production capacities of the Daewoo Textile Fergana and Daewoo Textile Bukhara. Both the companies will invest $12 million dollars from their own resources in 2014-2015 to expand their spinning capacities by 4,000 tons. The companies will invest another $10 million dollars to modernize and expand their capacities in 2016-2017. Around $3 million were invested in spinning production in Fergana and Bukhara to purchase new spinning equipment for improving the quality and volume of produced goods.
Daewoo Textile Fergana was founded in 1996 by Daewoo International Corporation which invested about $100 million in development of textile production. It specializes in textile production, in particular cotton fabric and yarn. The textile plant is located in the south of Fergana valley in the Eastern Uzbekistan. While, Daewoo Textile Bukhara is a leading company in textile field was launched by Daewoo International Corporation in Bukhara in 2008. Yarn produced by Daewoo Textile Bukhara is exported to many countries. In 2013, Daewoo Textile Fergana produced goods for $107 million and Daewoo Textile Bukhara worth $44 million.