Publication: Monitor Volume: 3 Issue: 1

Uzbek prime minister Utkir Sultanov’s December visit to Japan has produced two breakthrough deals for Uzbekistan, one of the world’s largest producers and exporters of raw cotton but which was deprived of a modern textile industry during Soviet rule. Japan’s Marubeni and Mitsubishi conglomerates have reached agreement with the Uzbeklegprom state concern to establish large-scale, export-oriented textile plants in Uzbekistan for processing local cotton. At a cost of $80 million and on a turnkey basis, Marubeni will modernize and expand the Ferghana textile plant to fifteen-fold its current production capacity. Mitsubishi, in turn, intends to build two new plants at a combined cost of $100 million. Most of the financing is to be provided on credit by Japan’s Export-Import Bank and the Japanese partners. The Uzbek side will have a 49 percent stake in each of these joint ventures. Uzbeklegprom’s export revenue is due to increase from a mere $13 million in 1995 to $250 million in 1998. Japan is now poised to hold the lion’s share of investment capital in Uzbekistan’s rapidly-growing textile industry, in which total foreign investment is slated this year to reach $290 million. (Interfax, December 31)

The Monitor is a publication of the Jamestown Foundation. It is researched and written under the direction of senior analysts Jonas Bernstein, Vladimir Socor, Stephen Foye, and analysts Ilya Malyakin, Oleg Varfolomeyev and Ilias Bogatyrev. If you have any questions regarding the content of the Monitor, please contact the foundation. If you would like information on subscribing to the Monitor, or have any comments, suggestions or questions, please contact us by e-mail at, by fax at 301-562-8021, or by postal mail at The Jamestown Foundation, 4516 43rd Street NW, Washington DC 20016. Unauthorized reproduction or redistribution of the Monitor is strictly prohibited by law. Copyright (c) 1983-2002 The Jamestown Foundation Site Maintenance by Johnny Flash Productions