Tukimachi Sanoat Textile Group (TST Group, Uzbekistan) will establish five enterprises in Azerbaijan within the formation of a cotton cluster, the Ministry of Economy of Azerbaijan has reported.
Elchin Rzayev, head of the executive authority of Imishli district, and Rahib Isayev, head of Tukimachi Sanoat Textile Group, a subsidiary of Tukimachi Sanoat Textile in Azerbaijan, signed documents on Friday to implement the joint project. “The document envisages transfer of 5.826 thousand hectares of agricultural land on the territory of the agro-park located in Imishli district and managed by the Agency for Development of Economic Zones (structure of the Ministry of Economy of Azerbaijan) for long-term use to the Uzbek company,” the ministry said.
TST GROUP will initially invest AZN 28.7 million ($16.9 million at the current exchange rate) in the creation of cotton fields on the territory of the agro-park, in 2025-2029 will build a cotton processing plant, spinning, weaving and garment factories, as well as a cotton oil plant. “Cotton processing and oil production plants will be established on the territory of the agro park, while spinning, weaving and garment factories will be set up on the territory of the Mingachevir Industrial Park,” the ministry said.
“In general, investments in the project are estimated at AZN 92.5 million ($54.4 million at the current exchange rate), and its implementation will create 1,130 jobs. It is also planned to attract funds from the Azerbaijan-Uzbekistan Investment Fund for the realization of the project. This project will allow to create a cotton cluster in Azerbaijan,” the Ministry said.
As reported, in May 2024, one of the founders of TST Group held talks with representatives of the Agency for Development of Economic Zones of Azerbaijan, their main topic was the realization of previously reached agreements on granting TST Group a land plot near the town of Imishli. Then it was reported that the volume of investment in the textile cluster project is estimated at $52 million. The meeting also discussed plans for joint processing of Azerbaijani cotton with export of products to third countries.
TST Group is a family group of companies engaged in production and wholesale of fabrics in Uzbekistan. The group is one of the five major producers of fabrics in the country.
