UZBEKISTAN: Daewoo to invest in two facility upgrades
South Korean corporation Daewoo International is to invest up to US$22m on the modernisation and expansion of production capacities of two textile plants in Uzbekistan.
The Daewoo Textile Fergana and Daewoo Textile Bukhara facilities will invest $12m from their own resources in 2014/2015 to expand spinning capacities by 4,000 tonnes. The companies will direct another $10m to modernisation and expansion of capacities in 2016/2017.
This year the company has invested $3m in spinning production in Ferghana and Bukhare, purchasing new equipment to improve quality and volume.
These latest investments suggests ongoing calls by activists and campaigners in Uzbekistan for an international boycott of Uzbek cotton and textiles as part of efforts to ramp up pressure on the government to end the use of forced and child labour in the country's cotton fields, may not be working.
Last month, two controversial loans worth more than $400m were approved for agricultural projects in Uzbekistan, which opponents claim could support forced labour.
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