China National Machinery Industry Corporation is expected to assist with attracting 300 million U.S. dollars for development of Tajikistan’s cotton processing industry.
A delegation of the Chinese company yesterday met here with Tajik Minister of Economic Development and Trade, Nematullo Hikmatullozoda.
According to the press center of the Ministry of Economic Development and Trade (MoEDT), China National Machinery Industry Corporation will assist the Tajik-Chinese JV Sino-Tajikistan Kulob Textile Industry Park with attracting foreign direct investments for processing of cotton fiber.
This enterprise is reportedly registered with the newly established Free Economic Zone (FEZ) Kulob.
The enterprise is expected to create 5,500 new jobs and its annual capacity will amount to 35,000 tons.
The issue of launching FEZ Kulob was also discussed at the meeting.at the government that took place in Dushanbe on February 28.
Four free economic zones now operate in Tajikistan: FEZ Sughd (Sughd province); FEZ Panj (Khatlon province); FEZ Danghara (Khatlon province) and FEZ Ishkashim (Gorno Badakhshan Autonomous Region – GBAO).
In the early 2000s, foreign direct investment has remained low because of political and economic instability, the poor domestic financial system, and Tajikistan’s geographic isolation. To attract foreign investment and technology, Tajikistan has offered to establish free economic zones in which firms receive advantages on taxes, fees, and customs. In 2004, the parliament passed a law on free economic zones. The zones reportedly offer customs and tax incentives to qualified investors that invest at least 500,000 USD and import at least 90% of the technology and equipment.
China National Machinery Industry Corporation (also known as Sinomach) is a Chinese conglomerate with businesses in tool making, construction equipment, agricultural equipment, and infrastructure construction. In two particular areas of construction engineering, the company is among the top in terms of revenue from international projects. Based on 2013 rankings compiled by the Engineering News-Record, the company is the third largest contractor of power projects and 8th largest contractor of industrial projects.
A major subsidiary is the YTO Group, primarily a manufacturer of agriculture equipment. In March 2011, YTO Group acquired McCormick France SAS, a French manufacturer of tractors, as part of strategy for entering the European tractor market.
Another major subsidiary of the company is the China Machinery Engineering Corporation (CMEC), a provider of engineering and construction services. The company expressed interest in building a 10,000 to 30,000 acre complex of industry, retail, and residential properties in the Boise area.
In June 2017, a sister SASAC-controlled conglomerate, China Hi-Tech Group Corporation (CHTC), became a wholly owned subsidiary of Sinomach through a restructuring, as part of a plan to reduce the number of SASAC directly-controlled companies.
