The project implementation will help to increase acetate filament output from 500 tonnes in 2009 to 2,000 tonnes in 2012.

The project will be implemented at the “Ferghana Chemical Fiber Plant” Unitary Enterprise, which has been transferred to the balance of Ferghanaazot, which is located in east of Uzbekistan.

The project will be financed due to loans of the local banks and funds within investment commitments from the sale of 51% stake at Ferghanaazot.

Ferghanaazot is the largest enterprise in Uzbekistan for the production of nitrogen fertilizer and it was commissioned in 1956. Currently, the plant is the largest chemical enterprise for the production of ammonium nitrate and carbamide.

Ferghana Chemical Fiber Plant was commissioned in 1969 to meet the demand of light industry enterprises for the artificial textile fiber. Its design capacity is 14,800 tonnes of chemical fibers, including 6,600 tonnes of acetate filament a year.

However, due to lack of raw materials (caprolactam), the capacity was mothballed. As a result, the company failed to repay debts on loans borrowed for the construction of the production line.

In 2009, the company was declared bankrupt and put on sale with a starting value of 125.2 billion soums. After the failed auctions, the government decided to transfer assets on a balance of Ferganaazot.