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Kyrgyzstan Review, 10 years ago




[30.04.23] Osh Textile Factory Out for Sale

Government of the Kyrgyz Republic and Ministry for foreign trade and industry are searching for a strategic investor to renovate JSC "Tekstilshik". The factory was put out for salt the end of April. The totals value of stock is 1 mln 950 thousand US dollars. The investor will also take over financial liabilities of the factory, including the Japanese credit of 6 mln 646 thousand US dollars (to be paid off within 5 years), budget loans of 43,9 mln soms (to be paid off within 2 years) and "PESAC" credit (to be paid off within 2 years). The future investor also has to meet the following criteria: the total amount of investment is to be no less that 14 mln US dollars within the next 5 years and export has to go up 10% per year starting 2004. The auction is scheduled to be held on June 18, 2003 and already now Russian and Chinese enterprises are making bids for it.
 
Initially the produce of Osh factory was targeting NIS markets. Siberian regions of Russia along with some other foreign investors take an interest in it now. The objective today is to revitalize production, vary assortment and re-equip the factory.
 
JSC "Tekstilshik" dates back to 1967. It used to be a prosperous enterprise during the Soviet times, however in the 90-ies it encountered a number of problems: rising prices on raw materials and increased energy costs, malfunctions in the central system of product distribution. The factory, among with other bankrupt enterprises, was included into "PESAC" restricting program. In 1995 it was reorganized into State Joint Stock "Tekstilshik" and in 1998 into an Open Joint "Tekstilshik" with 97,4 % stock owned by the Ministry for foreign trade and industry.
 
KNNA "Kabar", April 30, 2003

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