There are major opportunities for textile machinery manufacturers to be involved in new projects in Central Asia, the region consisting of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
All these countries have a long tradition of cotton cultivation, but differ significantly in terms of both geography and their readiness to invest in new technologies.
Kazakhstan, for example, covering an area of 2.73 million square kilometres, is the ninth largest country in the world, and the largest to be completely landlocked. It has a population of under 20 million people and 95% of its cotton is exported directly for processing in China.
Uzbekistan, by contrast, has around 35.6 million residents within an area of 447,400 square kilometres. In the last 10 to 15 years, it has turned from being a major cotton exporter – with annual production of around one million tons – to importing additional cotton supplies due to the growing textile processing sector.
Foreign direct investment
According to a report published by the German Agency for International Cooperation (GIZ), between 2016 and 2021, foreign direct investment in Uzbekistan tripled to reach US$25 billion in 2021 and over 59,000 projects were implemented in the period. In addition, industrial growth averaged 8% per year.
Even during the pandemic, the country recorded growth of 7% in 2020 and 7.4% in 2021. The textile and apparel sector has been at the heart of this transformation as a significant beneficiary from the reforms and a key contributor to the country’s growth.
The privatisation of cotton production, the introduction of the cluster model, the abolishment of forced labour, and the opening-up of the economy have contributed to the attraction of significant investments into the sector.
With over 7,000 textile and apparel enterprises, exports reached US$3 billion in 2021 and equally important, Uzbekistan was able to convert 100% of its cotton into yarn in 2021, transitioning towards higher value-added production and eliminating its exports of raw material.
In 2021, the 150 spinning companies in Uzbekistan with 3.7 million spindles and 239,000 rotors produced 862,000 tons of yarn, with around two thirds exported. The industry largely focuses on 100% cotton yarns but future investments in synthetic fibres are anticipated. There are now 218 weaving companies and 250 knitters in Uzbekistan – around four times the number that existed in 2017.
Rapid developments
Fabric exports have so far gone primarily to neighbouring countries and Uzbek producers have yet to move towards higher value-added production and more sophisticated fabrics. In 2023, however, Texygen, an established cotton spinner, made a significant diversification into nonwovens production with the installation of the first spunlace line in the country. The line is now producing 100% cotton substrates for disposable wipes.
“Uzbekistan is known as one of the world’s major cotton producers but has now established a textile and apparel industry that is at an exciting early stage of rapid development,” says Christian Schindler, director general of the Zurich-headquartered International Textile Manufacturers Federation (ITMF).
It is no accident that the ITMF, together with the International Apparel Federation (IAF), will hold a joint annual conference in Uzbekistan this September. The event will take place in cooperation with Uztextileprom, the Uzbek Textile and Apparel Industry Association, in Samarkand.
Following the example of Uzbekistan, Tajcottex, the newly-formed textile association of Tajikistan – another fast rising market for cotton processing – has also just become a member of the ITMF.
Kyrgyzstan’s textile industry too, is rapidly developing, and benefits from the country’s environmentally friendly energy system which is powered by advanced hydroelectric power plants.
Fabric exports have so far gone primarily to neighbouring countries and Uzbek producers have yet to move towards higher value-added production and more sophisticated fabrics. In 2023, however, Texygen, an established cotton spinner, made a significant diversification into nonwovens production with the installation of the first spunlace line in the country. The line is now producing 100% cotton substrates for disposable wipes.
Like Uzbekistan, Turkmenistan is now looking to develop a robust textile industry capable of processing its locally grown cotton and there has already been notable activity – the demand for Italian textile machinery from Turkmen companies rocketed from sales of €600,000 in 2022 to approximately €13 million last year.
ACIMIT, the Italian textile machinery association, meanwhile sees big opportunities in Turkmenistan and recently organised a trade delegation to the country. “Emerging at a global level in the textile industry requires first and foremost an updating of technology for competing with countries whose technology level is already at a more advanced stage,” says Marco Salvadè, president of ACIMIT.
The forthcoming ITMA ASIA + CITME textile machinery show which takes place in Singapore next October is anticipating delegations from the countries of Central Asia, as they look to continue on their expansion trajectories.
