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Sewing factory to be built in Kyrgyzstan’s Osh

A loan agreement was signed in Osh between the Russian-Kyrgyz Development Fund (RKDF) and Kyrgyz Textile Ltd. for financing in the amount of $4.3 million.The funds will be used for the construction of a clothing factory in Osh with a total production c…

A loan agreement was signed in Osh between the Russian-Kyrgyz Development Fund (RKDF) and Kyrgyz Textile Ltd. for financing in the amount of $4.3 million.

The funds will be used for the construction of a clothing factory in Osh with a total production capacity of more than 7 million units of clothing products per year, the press service of the RKDF said.

The factory will be the first stage of a large-scale textile cluster with a full cycle of textile production from domestic raw materials. Modern sewing, cutting and other equipment made in Japan and Europe will be purchased for the project. The major part of infrastructure of this textile cluster has already been built at the expense of Kyrgyz Textile Ltd. at the amount of more than $20 million.

Chairman of the RKDF Board Artem Novikov noted the large-scale socio-economic effect that the launch of production will have.

“Thanks to this project more than 900 jobs will be created. This is the first stage of implementation of a large textile and garment production cluster in the southern regions of the republic, from sowing cotton to exporting finished products,” he said.

The project will have a complex impact on the economy of Kyrgyzstan, increasing payments to the state budget in the form of tax and social contributions up to $ 5 million per year and increasing the inflow of export revenues into the country due to the fact that more than 90% of products will be exported to Russia and countries of the Eurasian Economic Union.

Source: Kyrgyz National News Agency

Last modified: October 19, 2021