Could you give us some background information on your company in terms of its history, structure and today's main activities ?
"Uzbek Ipagi" is an association which was created based on the decree of the President of Uzbekistan in February, 1998. This industry used to be under the Ministry of Agriculture. The industrial organizations which produce silk products were under the Ministry of Light Industry. After the decree was issued the organizations in the agriculture and light industry were united into a single company. Our industry mainly concentrates on silk garment, growing about 20,000 tons silk cocoons a year. Having processed silk cocoons we produce more than 2,000 tons of silk thread and 10 million meters of various silk materials and carpets.
Before the decree was issued our industry was underdeveloped, but on the basis of this decree it started to regain its significance. Japan and Korea were also producing silk in recent times but they apparently stopped silk production and started to purchase silk products from Uzbekistan. As you know, the world's famous silk producer is China. As for Uzbekistan, we have our special program according to which we are planning to become the second largest cocoon grower in the world. At present, we are in the process of signing the contract with South Korea based on the intergovernmental agreement between Uzbekistan and South Korea. During his visit to South Korea in 1999 our president has signed an agreement on loaning the silk industry in Uzbekistan according to which we are currently doing the paper work on obtaining the credit line for 15 million USD. Using this credit line we are planning to reconstruct all the silk producing factories in Uzbekistan due to which the export potential of Uzbek Ipagi will considerably increase up to 50 million USD a year. I should note that before the decree was issued our industry has not exported anything, but the creation of our association helped us to export silk production for almost 10 million USD. Our program presumes increase in the cocoon growing up to 30,000 tons, processing raw silk up to 25,000 tons and production of natural silk materials up to 10 million meters annually.
To what extent are you attracting foreign investment into your industry?
We started to attract foreign investors in 1999, and nowadays we are working on one of our factories in Ferghana Valley to cooperate with our American partners. We have a Japan - Uzbek joint venture "Silk Road" which exports 100% of its goods for 5 million USD. We also cooperate with German "Shultz", and three Chinese companies. So, by 2005 we are planning to reconstruct all companies in Uzbekistan through the attraction of foreign investment .
| What are the main incentives that you offer to foreign investors?
There are many inducements in Uzbekistan for foreign investors to invest especially in our industry where the investors really have a chance to make profits. At the moment the whole world is interested in silk products.
We just started advertising and offering our products on the Internet. I should mention that we do not keep any inventory in the warehouses, and all our products are highly competitive. At the moment, we have up to 3,000 tons of silk thread ready for export, and cocoons for 2,000 tons of thread. Due to the reconstruction that we have planned, we are creating a favorable environment for joint ventures and foreign investors allowing them to own up to 70% of the shares of our organizations. For instance, a Singaporean company has invested and opened here, a 100% private organization without any government guarantee. Our ministry has only guaranteed to provide 100% of raw material for Uzbek currency, which is very advantageous for them. Today this organization is operating successfully and exports 100% of its products abroad; today, this organisation is successfully operating and exporting 100% of its products abroad.
In May 2000, we have conducted a seminar "Silk 2000" seminar in the Intercontinental Hotel, where representatives from the whole world have participated, including embassies.
How do you view your contribution to the Uzbek economy, and what final message would you address to our readers ?
The contribution to the economy was that we have already brought 10 million USD profit to Uzbekistan. I consider that the development of our industry goes hand in hand with the development of the economy of Uzbekistan as a whole. As a leader of the industry I believe that the profit we will bring into Uzbekistan by 2005 will make up 50 million USD; I also belive that we will continuously grow as the years pass.
As for the message to your readers, I must say that it has only been 10 years since Uzbekistan obtained its independence, and I believe that Uzbekistan somehow will become one of the greatest countries of the world, and that is why I would advise your readers to get to know our country. Once they come here they will find out themselves what the opportunities are and consequently will be interested in investing here.
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Uzbek IPAGI