Uzbekistan's association for the leather and footwear industry, Uzcharmsanoat, is set to inaugurate a leather and footwear cluster within the small industrial zone of Akhangaran, the association's press service reports. The initiative aims to bolster the nation's industrial capabilities in this sector.
Collaborative Efforts
On March 4, Fakhriddin Boboev, Chairman of Uzcharmsanoat, convened with representatives from regional and district administrations, as well as entrepreneurs from the leather industry, to discuss the creation of the cluster near Akhangaran. During the meeting, the association reported receiving applications for various business projects, signaling early interest and commitment from stakeholders.
Cluster Details
The proposed cluster, situated in the Akhangaran district of the Tashkent region, spans an area of 16 hectares and is slated to accommodate 26 projects valued at $30mn. Emphasis was placed on constructing multi-story buildings to optimize land usage, minimize environmental impact from production facilities, and establish transparent mechanisms for shoe manufacturers' participation in auctions and land allocation processes.
Under a presidential decree issued on October 11, 2023, enterprises operating in the leather, footwear, and fur industries are permitted to offset agricultural and forestry losses over a one-year period. Moreover, the starting price for land plots within the 16 small industrial zones, subject to auction, is determined based on a 25-year lease term.
Auction Procedures
Land parcels within the industrial zones are auctioned electronically, with bids starting at 10% of the specified starting price. Successful bidders are required to remit payments for land plots over three years, facilitating accessibility for businesses seeking to establish a presence in the industrial zones.
In February, Uzcharmsanoat disclosed plans for Turkish firm Warboots to invest $50mn in the production of military boots across eight hectares within the Akhangaran industrial zone.
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