KHUJAND, November 15, 2010, Asia-Plus — The Khujand-based textile enterprise, Kabool-Tajik Textiles, which was supposed to resume operations on November 10 is still standing idle.
The enterprise acting director Damir Boyev says they are currently conducting negotiations with partners in Europe over new prices for their product.
“After resuming operations in June, we have delivered a total of US$30,000 worth of our product to Belgium and Switzerland, but we were forced to suspend operations on October 25 due to lack of raw materials,” the director said. The problem has resulted from increase in prices of cotton, which is feedstock for the enterprise that produces cotton yarn. “The cotton yarn prices will also rise following increase of the cotton prices. For all appearances, both sides will have to compromise,” said Boyev, “This is necessary in order to hold our ground in an external market.” According to him, the enterprise is expected to resume operations on Wednesday, November 17.
This year, the enterprise has operated only four months and produced 3 million somoni worth of product.
Founded in 1994, Kabool-Tajik-Textiles was the Tajik-Korean joint venture. South Korea’s Kabool LTD assumed the 56% ownership interest in the enterprise and Tajik open-joint-stock company (OJSC) Abreshim (Silk) owned 44 percent of the shares. In October 2008, Abreshim sold its equity stake in the enterprise to Zarin Holding Limited at 500,000 U.S. dollars.
After long examinations a part of equity stake of South Korea’s Kabool LTD in the enterprise was transferred to the Tajik side and other part of Kabool LTD’s equity stake was given towards the repayment of its debt.
