The renowned Italian lingerie brand Cotonella has initiated the supply of products manufactured in Uzbekistan to the European Union, as reported by the Uztekstilprom association.
The decision to shift production to Uzbekistan was unveiled in the summer of 2023, prompted by challenges faced by the company, including dwindling profitability, labor shortages, and escalating energy prices in its previous supplier locations. Seeking a more sustainable and economically viable environment, Cotonella entered into a preliminary agreement in July to establish a factory in Uzbekistan.
The choice of Uzbekistan was influenced by factors such as the proximity to raw material sources, the availability of skilled workers, and relatively affordable energy. The local partner for this venture was the Kukdala Cluster in the Kukdala district of the Kashkadarya region. In January, the joint venture marked its commencement by exporting three types of knitted products with a combined value of $100,000.
The establishment of the factory in this new location attracted over $5mn in foreign investment and provided stable employment opportunities for over 100 individuals. The Uztekstilprom association anticipates that this joint venture will facilitate the infusion of foreign expertise into local enterprises.
In its initial phase, the factory is set to produce up to 2mn units annually, with future plans to scale up production to 8mn units and create employment for 500 individuals. Cotonella S.p.A., with a legacy dating back to 1972, specializes in the production of women's, men's, and children's knitted underwear, churning out over 20mn products each year, predominantly sold in 24 countries across Europe.
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