Uzbekistan, Turkey to launch joint cluster for production of shoes, leather

Trend:

The Uzbek-Turkish cluster for the production of leather and shoes is scheduled to be launched in the Jizzakh region by the end of this year, Trend reports citing Uzbek media.

The head of the economic planning department of the Uzcharmsanoat Association Dilobar Zufarova said that the project to create a cluster is in an active stage of development.

"The company has already received the necessary loans, and construction is now underway. By the end of 2019, leather production will be launched with shoe production to be adjusted afterwards. It is planned to master the production of leather goods at the next stage," Zufarova said.

The investment cooperation agreement was signed in Istanbul in 2017 by representatives of the Turkish Leather Industrialists Association and the Uzbekcharmpoyabzali Association of Leather and Shoe Enterprises.

Within the cluster, it is planned to set up three industrial complexes including factories for leather processing, shoe manufacturing, and leather goods. This will create a complete chain, from the processing of raw materials to the sending of finished products to customers. A significant part of the goods produced will be exported to the CIS countries and Europe.

To date, Uzbekistan has achieved one hundred percent coverage of the market for men's shoes, and women's and children's segments are on the way.

As was reported earlier, Uzbekistan intends to initiate export of men's shoes and leather goods made from ostrich leather. The exclusive models developed by Uzbek designers will be exported to Italy and Spain.

Over 500 enterprises work as part of Uzcharmsanoat. If in 2017 enterprises produced 10.9 million pairs of shoes, in 2018 this figure increased 5.4 times, reaching 58.1 million pairs. The production of leather goods and consumer goods increased 2.7 and 2.4 times respectively.