Uzbekistan and Kazakhstan have agreed to relaunch the idle textile enterprises in Shymkent, media reports.
Last August, the textile factory in Shymkent and the cotton plant were forced to suspend production, reportedly, due to 'certain difficulties in the supply of raw materials, as well as a shortage of personnel'.
The two countries inked a roadmap including on joint relaunch of idle enterprises,
The initiator of the project to resume textile production in Shymkent will be an Uzbek investor, who undertakes to invest in the purchase of raw materials, renovate the equipment, and train employees.
Kazakhstan's authorities assisted in the fact that, due to the budget, enterprises connected to electricity, reduced tariffs and were given tax preferences.
In turn, textile entrepreneurs in Shymkent complain about the lack of specialists, which leads to the underutilization of production capacity.
In November 2022, local businesses requested an increase in employment quotas for Uzbeks in local sewing and other industrial enterprises, which were affected by acute labor shortages.
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