The joint venture invested US$11 million for modernization of capacity on scutching cotton bales, production of cellulose mixture and paper, as well as their processing.

It is expected that Yangiyul Pulp and Paper Mill will resume production of cotton cellulose in early September and the venture will produce 6,000 tonnes of product by the end of 2011.

As reported earlier, Daewoo International Corp and Korea Minting & Security Printing Corp (KOMSCO) purchased Yangiyul Pulp and Paper Mill for US$19.2 million in July 2010.

The sides founded joint venture, Global Komsco-Daewoo, to carry out the project in Uzbekistan. Daewoo International Corp. holds 65% in the venture and Korea Minting & Security Printing Corp. – 35%.

Within the project, KOMSCO supplied its technology on production of cotton cellulose, while Daewoo International shared its experience of doing business in Uzbekistan.

The company will organize production of 20,000 cotton cellulose per year by the end of 2013, including for production of cotton cellulose for banknotes, chemical products and high technological fiber Lyocell. The enterprise will export at least 90% of goods.

The enterprise will create at least 180 new jobs after the enterprise will reach its full capacity, which should take place by 31 December 2013.

In line with the investment agreement between the Uzbek Government and the Korean consortium, investors undertook obligation to invest US$16 million to modernization of the mill in 2010-2013.

Yangiyul Pulp and Paper Mill was commissioned in 2001. The project with total cost of US13 million envisaged construction of the capacities with 20,000 tonnes of cellulose and 12,000 tonnes of paper a year. France’s Clextral supplied equipment to the mill. SocieteGenerale issued loan to finance the project.