Uzcharmsanoat: total investment in the industry amounted to US$446 million
Tashkent, Uzbekistan (UzDaily.com) -- On 3 August 2021, the Uzcharmsanoat Association organized a press conference on the theme "Development of the leather, footwear and fur and fur industry in 2016-2020." The event was attended by the leadership of the Association, representatives of state and non-state media, bloggers.
First of all, the speakers focused on the main goal set by the President of the country in the Address to the Oliy Majlis and the people: "the production of competitive products, the search for new international markets and the increase in exports, the full use of the transit potential are the key to sustainable economic growth."
The fulfillment of this strategic task will determine the basis of each industry and will make it possible to objectively evaluate promising projects.
As a result of the conditions created by the country’s leadership for the development of the direction, increasing supplies abroad, as well as thanks to the measures taken to strengthen the investment climate, production volumes and the export potential of the leather and footwear, leather haberdashery, fur, astrakhan and wool industries show stable growth. State support and clear target development programs play a special role in this.
If we pay attention to the investment projects implemented in the leather, footwear and fur and fur industries of the country over the past five years, the total investment in the industry amounted to US$446 million. Compared to 2016, by the end of 2021, investment inflows are expected to grow 13 times.
Here’s another comparison. In 2016, only US$15.7 million was invested in the sector, in 2020, despite the coronavirus pandemic, this figure reached US$187.6 million, and is expected to exceed US$202 million in 2021. The main part of the projects is related to the expansion of capacities, modernization and technical re-equipment of the production of import-substituting and export-oriented products with high added value. To ensure their timely and high-quality implementation, the Association, together with the Ministry of Investment and Foreign Trade, provides practical assistance to entrepreneurs.
In total, 112 projects worth US$202 million will be launched under the investment program in 2021, in the first half of this year, 29 projects worth US$42 million were launched, and 2,215 new jobs were created.
As a result of ongoing investment projects, the production of finished leather and footwear, leather goods, fur and astrakhan fur, wool products based on raw materials from local enterprises has significantly increased in recent years. The quality of national products has improved. The production of new types has been mastered. At the end of last year, the enterprises of the industry produced goods for 3 trillion 647 billion soums, and compared to 2016, the growth rate exceeded 8 times.
By the end of 2021, it is expected to increase the production of goods under the brand "Made in Uzbekistan" - footwear, leather goods, fur and wool with high added value - several times.
For example, by the end of 2021, more than 115.0 million pairs of shoes will be produced. For comparison, in 2016 this figure was only 10.2 million pairs.
Particular attention is paid to attracting local producers to the process of deep processing of raw materials. To this end, the enterprises of the system have recently been equipped with the best equipment produced by leading companies in industrialized countries such as Italy, Germany, Turkey, China.
In addition, systemic measures are being taken to turn Uzbekistan into a kind of hub for processing raw materials in Central Asia. They have already begun to bring leather from neighboring republics, which goes through a full cycle of processing here and turns into a finished product with high added value. This means that the new enterprises will produce finished leather of the third processing, that is, "finish".
Today, among the priorities are the tasks of ensuring localization, the rapid development of internal and inter-sectoral cooperation, and improving the quality of products. Work in this direction is underway, as evidenced by the figures.
If in 2016 only one percent of finished leather sold to foreign countries accounted for “Krastova” and “finishing” leather, and the rest was semi-finished leather, then, according to forecasts, by the end of 2021, the export of finished goods with high added value will reach US$420 million.
Currently, leather, footwear and fur products under the brand “Made in Uzbekistan” find their customers in the markets of more than 30 countries of the world. In the next 3-5 years, the list will be replenished with new countries in Europe and Southeast Asia. By the end of 2021, the export of the industry will grow 4.1 times compared to 2016.
The Association and its member companies take an active part in such international exhibitions in the field of leather, footwear and fur as Aimod, Aysaf, China International Export & Import, APLF Leather & Materials, MICAM Milano International Footwear Exhibition, Linipelli, Pure London, India International Leather Fair, Mosshoes, Shoes Star-Asia, BiOT, Soft Gold.
At the same time, the sustainable development of the leather and footwear industry in Uzbekistan, the favorable investment climate attract international brands to our country. For example, the world famous Kari will start producing footwear in Uzbekistan under its own brand within the next year. Today the company has 1,500 retail outlets and supplies customers with 50-60 million pairs of shoes a year. Currently, it is planned to start construction of a plant in Jizzakh region.
Thanks to the successful implementation of the policies and government programs pursued by our President, the leather and footwear industry is experiencing particular growth dynamics. The Uzcharmsanoat Association will continue to make every effort to fulfill the primary task - to provide the population with affordable, high-quality, modern, beautiful footwear and leather goods.