POSCO International to Cultivate Cotton in Uzbekistan Covering an Area 120 Times Larger Than Yeouido

At the cotton cluster project business agreement ceremony held on the 8th at the POSCO International headquarters, Ju Si-bo, President of POSCO Inter (second from the left), and Khairulla Bozarov, Governor of Fergana, Uzbekistan, are posing for a commemorative photo.

[Asia Economy Reporter Choi Dae-yeol] POSCO International announced on the 8th that it has decided to consider participating in the cotton cluster project promoted by the Uzbekistan government.

This project encourages cotton processing companies to directly participate in cotton cultivation to ensure stable raw material supply for the local cotton industry. POSCO International, which operates a cotton processing plant locally, presented a blueprint to improve facilities and establish an eco-friendly production line. The signing ceremony held that day was attended by Ju Sibo, President of POSCO International, and Khairulla Bozarov, Governor of Uzbekistan's Fergana region, who was visiting Korea.

POSCO International recently decided to add production facilities for eco-friendly blended yarns and fabrics, which are in increasing global demand. They also discussed building infrastructure for processing eco-friendly products, including establishing a production system for recycled polyester staple fiber (PSF). As part of this project this year, the company confirmed a cultivation area of 5,000 hectares in the Fergana region. They are also pushing to secure 2,000 hectares in the Tashkent area. Additionally, they plan to participate further in the cotton cluster in the central-western region, aiming to increase the total cultivation area to 35,000 hectares by 2025, which is 120 times the size of Yeouido.

Uzbekistan is one of the world's top five cotton exporters, exporting 3 million tons annually. POSCO International established a local spinning factory in 1996, followed by the Fergana cotton spinning subsidiary in 2006, and a cotton processing plant in the Bukhara region in 2008. It is considered the largest cotton processing company locally. The local workforce is about 4,000 employees, with an operating profit of approximately 37 million dollars as of last year. The company is also active in corporate social responsibility activities, such as building educational centers for local youth.

Governor Bozarov said, "This will be an opportunity to upgrade Uzbekistan's cotton industry through continuous investment and a distinctive vision." President Ju said, "We will create a sustainable industrial ecosystem through vertical integration from cultivation to finished product production, moving beyond simple processing."

This content was produced with the assistance of AI translation services.