Uzbekistan establishes textile joint venture with Switzerland

"Uzbekistan Light Industry Company" and Swiss "Rieter Textile Machinery Company" plan to establish a textile machinery production joint venture in Ukraine - "Ridan Uzbekistan". The agreement signed by both parties was confirmed by the presidential decree on "Organizing the production of modern textile machinery." The Swiss company will invest US$2 million in this project from 2011 to 2012 to modernize textile machinery and upgrade technical equipment, and gradually organize the production of textile equipment on the basis of the “Uzbekistan Textile Machinery Company” that has ceased production. The project will be implemented in three phases: The first phase (2011) will complete the construction of the plant and facilities, and the installation and commissioning of the process equipment; the second phase (2012) will put into production the tape feeder and the carding machine; the third phase (2015) will be put into operation in metal processing workshops. According to the Ukrainian presidential decree, before July 1, 2015, the "Rieter-Uzbekistan" company will be exempted from all taxes and duties including the basic business tax that must be deducted by Uzbekistan Highway **. It will also enjoy equipment not produced in Uzbekistan. Instruments, machinery and other materials and products are exempt from preferential tariffs on import duties.