The sides signed a corresponding agreement, which was approved by the presidential resolution “On measures on organization of production of modern equipment”.

The document envisages strategic partnership at modernization and technological re-equipment of the industry’s enterprises and organization of production of textile equipment at the base of Uzbektextilmash, which was recently liquidated. It is expected that the venture will launch production of drawing box, hackling and ring-spinning machines.

The sides will create Rieter Uzbekistan FE LLC to implement the project. Maschinenfabrik Rieter AG will direct about US$2 million to realize the project in 2011-2012.

The project will be implemented in three stages. The enterprise will complete construction of buildings and assemble technological equipment in the first phase (2011). In the second phase, the enterprise will launch production of drawing box and hackling machines (2012). In the last stage (2015), the venture will commission metal processing shop.

In line with the resolution, Rieter Uzbekistan will be exempted from payment of all taxes and mandatory payments on its main activity till 1 July 2015.

Uzbek President also exempted Maschinenfabrik Rieter AG from payment of income tax, customs payments for imported equipment, tools, and materials, which are not produced in Uzbekistan.