Uzbekistan, Tashkent, Apr. 5 / Trend D.Azizov /
The German Falk-Porsche-Technik and Uzpakhtasanoat Association, which comprises Uzbek cotton-processing enterprises, signed the founding documents of the Deutsche Buttermilk Plast joint venture worth $10 million to produce materials and containers for cotton fiber packing.
The Falk-Porsche-Technik's share in the joint venture is 51 percent in the form of equipment and funds and the share of the Uzbek side is 49 percent in the form of industrial premises.
The joint venture, with an annual design capacity of 10,000 tons of polyester tape, and 3,000 tons of soft containers for packing cotton fiber, will be established on the basis of one of the association's companies in Tashkent. The plant is expected to be commissioned in the third quarter of 2010 and will be financed via direct investments from the German company.
Deutsche Buttermilk Plast is the second joint venture in Uzbekistan, created with Falk-Porsche-Technik GmbH's participation. In 1999, the company bought a 95.6-percent stake in Electrosignal (Tashkent), which is engaged in the development and production of special cables and wires, creating on its basis the joint venture Deutsche Kabel AG Tashkent.
The joint venture produces various cable products, medium-carbon steel wire and LAN cables.
The Uzpakhtasanoat Association includes 142 companies and organizations, including about 100 cotton plants.
Uzbekistan occupies sixth place in the world in terms of cotton fiber production and third place in terms of cotton fiber exports. The country produces about 3.6 million tons of raw cotton and 1-1.2 million tons of cotton fiber per year.