Spinning factory that was out of operation for 20 years to be restored in Jizzakh region

The production areas of the former spinning mill in Jizzakh, which have been on the Elegans Teks balance, have remained inactive for 20 years. Now a “Textile combine named after Sharaf Rashidov” will be created here, whose sole founder has been indicated IP LLC “Jizzakh Textile”, follows from the resolution of the Cabinet of Ministers.

At the beginning of 2018, the facility was placed at auctions at a starting price of 21 billion soums, but, apparently, there was no potential buyer for it.

It turned out that the restoration of production in these areas requires a complete reconstruction of all buildings and structures.

In this regard, the National Bank for Foreign Economic Affairs (NBU) and the company New Light General Trading FZCO (UAE), which together own a 76% stake in Elegans Teks, filed a lawsuit.

In their statement, the participants asked to exclude from the composition of participants Portway LLC (USA), which owns the remaining 24%.

The reason is gross violations by the American company of its obligations as a participant and inaction in the management of the factory. On July 19, 2018, the Jizzakh interdistrict economic court upheld the lawsuit.

After that, New Light General Trading FZCO appealed to the NBU with a proposal to buy out its stake (26%) at the market value determined by the appraisal organization at 4,474,963,000 soums.

Now it has been decided to buy out a share of the Arabic company, to sell all property of Elegans Teks at the cost of 11.5 billion soums (this is the sum of shares of the bank, American company and liabilities) in favor of LLC “Textile combine named after Sh. Rashidov”, and to provide the new company with concessions until 2022.

It is expected that there will be created textile production with an annual capacity of 12,000 tons of yarn, as well as its processing products – 3.0 million sets of bed linen and 13 million pieces of garments. 2,550 new job vacancies will be created with the introduction of new production in the second half of 2020.

All this will allow increasing the export potential of the region, creating new jobs, effectively and efficiently using objects of unused production space.