From court disputes to new investments. The President ordered support for Sulton Tex Group

From court disputes to new investments. President orders support for Sulton Tex Group

President Shavkat Mirziyoyev instructed the National Bank to work out the issue of financing the expansion of the Sulton Tex Group textile cluster in Kashkadarya. The company, which currently employs nearly 8,000 people, plans to significantly increase the number of jobs.

The head of state announced this on October 21 during a visit to the Sulton Tex Group factory in the "Kashkadarya" free economic zone. Details of his conversation with the head of the enterprise, Nurbek Ergashev, were shown on the "Ahborot 24" program.

During the visit, the president got acquainted with the production process, talked with employees, and discussed further plans for the development of the cluster with the entrepreneur. According to the head of state, the enterprise, which provides employment for several thousand people, could become one of the region's major industrial projects.

"Why do I call this project social? Because it provides so many people with jobs. A Cabinet of Ministers decision is needed to turn it into a driver project for Kashkadarya. We will create conditions to double its capabilities," Mirziyoyev said.

The president proposed developing the cluster as a large holding-type company with the involvement of the National Bank.

"We will turn it into a large company similar to a holding. I am giving instructions to the National Bank. Make the calculations now. Within a month we will adopt a decision, we will determine how many millions are needed. I want to allocate funds to speed up this process," he said.

The president did not specify the exact amount, conditions, or sources of financing.

According to Mirziyoyev, Nurbek Ergashev promised to bring the number of jobs to 30,000 by 2030. The president also noted that the entrepreneur aims to increase product exports to $150 million in the future.

"Today I went to Sulton Tex Group. Nurbek and I have spoken many times. Every time I came, he strived for innovation, raised issues, and made great efforts. He created 8,000 jobs. Salaries are paid on time, expenses and settlements are carried out on time," the head of state highlighted during a meeting with investors.

At a meeting on the development of the Kashkadarya region held on October 22, Mirziyoyev returned to the entrepreneur's plans. According to the presidential press service, this referred to the intention to provide employment for another 30,000 people by 2028, including expanding job opportunities for women.

The president also announced that he had signed a decree awarding Nurbek Ergashev the honorary title of "Honored Entrepreneur of Uzbekistan."

New investment projects worth $87 million

During the visit, Mirziyoyev inspected Sulton Tex Group's new fabric production and dyeing factory.

The enterprise is located on the territory of the "Kashkadarya" free economic zone.

The project cost amounted to $54 million. Facilities designed to produce and dye 20,000 tons of fabric per year are located on an area of 12 hectares. The factory has created 840 jobs.

Special attention at the enterprise is paid to reducing water and electricity consumption. According to the presidential press service, a closed water circulation system worth $3 million allows for the purification and reuse of more than 95% of the water used in production. It is reported that the annual savings will amount to 1.1 million cubic meters.

The president instructed that this experience be popularized in other textile enterprises across the country.

A gas generator has been installed to provide the factory with an uninterrupted electricity supply. Solar panels with a total capacity of 3.5 MW are placed on the roof and walls of the building.

During the presentation, a representative of the enterprise informed the president that the investment in solar panels amounted to 24 billion soums. According to his calculations, they will save approximately 10.4 billion soums annually, with a payback period of two years and two months.

During the inspection, the president noted that the introduction of resource-saving technologies serves to reduce product cost prices and increase the competitiveness of enterprises.

"Thanks to our new generation of entrepreneurs, today we are reaching a completely new level. They are not only creating value-added chains, but also caring for the environment by introducing green technologies," Mirziyoyev said.

Sulton Tex Group intends to continue expanding production. According to the presidential press service, the company intends to implement a new $70 million project in the "Kashkadarya" free economic zone, providing for the creation of 3,570 jobs.

An additional $17 million is planned to be directed to projects in other districts of the region. They are expected to provide employment for 1,220 people.

Sulton Tex Group is a textile company engaged in cotton cultivation and processing, yarn, fabric, and finished clothing production in the Kashkadarya region.

The president has visited its enterprises before.

In December 2018, Mirziyoyev got acquainted with the second phase of production in Karshi. At that time, an enterprise equipped with machinery imported from Switzerland and Japan operated on the site of a former cotton ginnery. It employed nearly 300 people.

In an incomplete period of 2018, the enterprise exported products worth $12 million to Poland, Turkey, Iran, Egypt, and other countries. Goods worth 50 billion soums were delivered to the domestic market.

At that time, capacities to produce 3,000 tons of knitted fabric per year were launched at the enterprise. Subsequent stages envisaged the establishment of fabric production, their dyeing, and the sewing of finished garments.

In October 2023, the president visited another sewing enterprise of the cluster built for $8.2 million.

Its capacity was 5 million pieces of clothing and knitwear per year, and the products were exported, in particular, to the USA, Canada, Poland, Singapore, and Russia.

According to the presidential press service, during that period, nearly 3,000 people worked across the cluster's entire production chain—from cotton cultivation to finished product manufacturing.

In May 2025, Sulton Tex Group began construction of a garment and knitwear factory worth $7 million in the Mirishkor district of the Kashkadarya region. The project provides for the creation of 500 permanent jobs.

By October 2026, as announced by the president, the number of jobs in the cluster had reached 8,000.

Earlier, the company was in litigation with Kashkadarya officials due to the termination of its activities as a cotton-textile cluster.

Gazeta wrote in detail about the entrepreneur's problem and covered the trial.

In 2020, Nurbek Ergashev filed a lawsuit against former Deputy Prime Minister Uktam Barnoev, former Minister of Agriculture Jamshid Khodjaev (currently Deputy Prime Minister), and other officials.

The entrepreneur argued that the decision to exclude the company from the list of clusters was groundless and damaged its activities.

In June of that year, the Karshi District Administrative Court recognized certain actions of the local authorities as illegal and partially satisfied Sulton Tex Group's application. However, the company later lost during the appeal process.

In August 2020, Ergashev stated that as a result of the government's actions, the enterprise suffered damages amounting to 10.7 billion soums and 490 employees were left jobless.

Jamshid Khodjaev admitted that the regulatory legal framework defining the rights and obligations of all participants in cluster-type production was still lacking.

Six years have passed, but the legislative framework has still not been created.