Khankendi sewing factory - bright example of Azerbaijan-Uzbekistan investment cooperation

The sewing factory in Khankendi is a vivid example of economic and investment cooperation between Azerbaijan and Uzbekistan.

Report's correspondent joined a media tour organized at the sewing factory.

It was noted that the construction of the sewing factory in Khankendi was implemented on the instructions of the presidents of the two countries and became the result of deepening economic and investment cooperation between Azerbaijan and Uzbekistan. This joint factory is a symbol of successful partnership between the two countries. The project not only creates new opportunities for the development of light industry in Azerbaijan but also contributes to the development of traditional friendly and economic ties between Azerbaijan and Uzbekistan.

The factory produces 150 types of men's clothing, 300 types of women's clothing, and 150 types of children's clothing from various fabrics. In the future, it is expected to produce men's shirts, as well as special and military clothing. Currently, the factory produces 2,500 units of various knitwear products daily, and this figure is expected to increase to 10,000. About 80% of the products will be exported to various countries. At the first stage of the project, 250 people with professional training were employed. In total, 500 jobs will be created at the factory. The majority of the workers are Azerbaijanis who have returned to the liberated territories and those living in the surrounding areas.

The initial investment cost of the project is 6 million manats ($3.53 million), and joint industrial cooperation is being carried out to ensure the supply of raw materials. The factory operates using local raw materials, as well as raw materials from Türkiye, Uzbekistan, and China. A preferential loan of 3.5 million manats ($2.06 million) was allocated for the creation of the factory through the Azerbaijan Business Development Fund under the Ministry of Economy, and tax and customs benefits amounting to about 640,000 manats ($376,470) were also applied. The factory's activities will have a significant impact on the growth of non-oil exports in the region.

On July 3, the presidents of Azerbaijan, Ilham Aliyev, and Uzbekistan, Shavkat Mirziyoyev, viewed the Businesstex JV sewing factory, a joint venture between Azerbaijan and Uzbekistan, located in Khankendi.