Azernews.Az

By Kamila Aliyeva

American Olef Creations Inc. and South Korean AVID intend to create jewelry production in Uzbekistan, Podrobno.uz reported.

These plans were discussed during the negotiations of company representatives with Deputy Prime Minister and Finance Minister Jamshid Kuchkarov.

“Uzbek gold takes the leading positions in the world ratings on quality, extraction not only in the republic itself, but also abroad. The created conditions, privileges and preferences for investors make your country one of the most attractive countries for investment. The potential is huge and we are confident in the prospects of our mutually beneficial cooperation,” said president of the AVID jewelry company Lee Bong Son.

The companies will work in Uzbekistan within the framework of a joint consortium, which has already established its foreign enterprise that started preparatory work for the project, as well as a detailed study of the market.

“During the talks, the sides discussed the implementation of an international scheme for financing the jewelry industry on the basis of gold leasing and agreed to attract consultative assistance from international financial institutions,” the Uzbek Finance Ministry said.

In addition, Uzbekistan has reached agreements with South Korea's Avid to create an industrial zone for the production and training of the industry specialists through the creation of a joint venture.

Uzbekistan intends to launch a full-scale industrial production of jewelry products, which previously were made by handicraft, next year.

In the coming year, the country plans to produce gold products worth $16.4 million and silver products worth $111,900.

By 2020, the republic will bring the annual output of jewelry products to more than $40 million. For three years, the output of silver products is planned to increase by 6.2 times - from $112,000 in 2018 up to $760,500 in 2020, and gold products by 2.4 times, from $16.4 million up to $39.6 million.

A special emphasis will be placed on promoting products abroad. In 2020, it is planned to export jewelry for almost $14 million.

The main volumes will be produced on two enterprises, which will be put into operation in 2018-2019. These are jewelry factories on the basis of the Phonon and 1-Zargarlik Korhonashi companies. It is planned to attract the famous South Korean company Jemco for the development of the first enterprise, and the local bank Asaka for the second one.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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