Domestic footwear to expand exports

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June 9, 2016

Domestic footwear to expand exports


O’zbekcharmpoyabzali Association, which incorporates domestic enterprises of leather and shoe industry, is planning to increase exports by 14.1 times this year.

The goal will be achieved through a package of measures to ensure sustainable production growth by successive modernization of the industry, re-equipment of enterprises and technological renovation of operating facilities.

Foreign investments in local enterprises would notably enhance the technical capacity of the industry, enable them to purchase new equipment, which in turn will help to scale up the production volume and expand the product range.

Aiming at drawing foreign investments and establishing up-to-date enterprises, O’zbekcharmpoyabzali Association in cooperation with provincial authorities developed and approved the regional program of industry development for 2020, which comprises 82 projects on the establishment of modern manufactures, upgrade and expansion of operating enterprises.

For example, 48 out of 82 projects are aimed at establishment of new businesses, and 34 projects envisage modernization. The total investment in the sector will exceed $114 million. The production volumes will grow to $476.5 million by 2020, which is 2.8 times more against 2015. Along with that, it is planned to increase exports to $301.2 million, and create 3,240 new jobs.

In pursuance of increasing export capacity, the Association is planning to open 12 new trade houses abroad this year.

Moscow, with as many as five trade houses, will lead in this direction. Three trade houses will be launched in the white stone city in the third quarter of 2016. Two of them will specialize in shoes sales, and the third one will be an exposition center of leather and footwear products by Uzbek manufacturers. Two more houses will open later in 2016 to promote sports shoes.

Kazakhstan ranks the second after Russia with four trade houses. It is followed by Turkey, South Korea and China.

In the first quarter of 2016, Uzbek leather and shoe manufacturers exported products totaling $22.3 million, with 4.3 percent increase YOY. They have planned to increase exports to a total of $190 million by the end of the current year.

By 2020, Uzbekistan will expand the geography of exports to 16 countries. This year, delivery contracts have been already signed with 11 countries – Singapore, Ukraine, Czech Republic, Kyrgyzstan, India and Pakistan, in addition to the abovementioned countries.