Lady Prima from Chelyabinsk and Asia Invest Textile from Uzbekistan agreed to establish a textile factory in Samarkand at the Russian-Uzbek business forum. The project, worth about RUB 130mn ($1.5mn), is scheduled for completion between 2024 and 2025, according to Kommersant.
The decision to expand into Uzbekistan was influenced by a shortage of qualified personnel in the Chelyabinsk region, where it has become increasingly difficult to find skilled workers. Denis Ershov, Head of Supply Service at Lady Prima, emphasized that Samarkand offers the necessary resources and workforce. Products from the new factory will be exported to Russia and sold locally.
"We plan to start with the production of bed linen sets, which are in high demand as gifts for weddings and holidays. Later, we will expand to curtains, towels, duvet covers, pillows, and other products," shared Ershov.
Under the agreement, Asia Invest Textile will assist in selecting production premises, legal registration, and employee recruitment.
Lady Prima was registered in the Chelyabinsk region in 2013, specializing in curtains, bed linen, pillows, blankets, and other textile products. The company's 2023 sales revenue exceeded RUB 1.1bn ($12.6mn), with a net profit of RUB 4.8mn ($54,777). Asia Invest Textile, based in Samarkand, produces over 2mn meters of raw fabric and processes 500 tons of raw materials monthly. Their range includes fabrics of various types and weights.
Denis Silin, CEO of Lady Prima, highlighted the difficulties in finding qualified personnel in the Chelyabinsk region as a driving factor for the expansion.
"It is becoming increasingly difficult to find qualified personnel," he noted.
Alexander Goncharov, Executive Director of the Union of Industrialists and Entrepreneurs of the Chelyabinsk Region, stated that Uzbekistan welcomes foreign investors, especially from Russia, offering preferences and benefits such as tax and customs duty exemptions for up to ten years, preferential rent, and privatization of state property. The availability of raw materials like cotton, jute, wool, and silk is also a significant advantage.
With this expansion, Lady Prima aims to leverage the resources and workforce in Samarkand, addressing the personnel shortages in Russia while tapping into the growing textile market in Uzbekistan and the CIS.
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