By Kim Tae-gyu
Daewoo International, the nation’s leading trading company, and the state-run Korea Minting & Security Printing Corp. (KOMSCO) set up a joint venture last week registered as Global KOMSCO Daewoo to acquire an Uzbek firm.
Daewoo International said Sunday that the two companies would cooperate in efforts to take over the Uzbek Kogozi Company that churns out cotton celluloses in bulk used to make bills, checks, gift cards, gun powders and fine chemistry products.
The two corporations regard it as a done deal as Daewoo and KOMSCO signed a memorandum of understanding (MOU) in February with the National Bank of Uzbekistan, which owns 100 percent of Kogozi.
``After signing the contract in the coming months, Global KOMSCO Daewoo will begin full-fledged operations in the Kogozi facilities during the first half of 2011,’’ a Daewoo International representative said.
``Kogozi will roll out 20,000 tons of cotton celluloses annually. Cotton cellulose has emerged as an eco-friendly material and there is an annual demand for roughly 17,000 tons in Korea, 100 percent of which is imported.’’
The Uzbek government promised to support the scheme by unconditionally offering raw materials as well as pledging generous tax benefits.
Daewoo has already established a track record of having successfully run two businesses in Uzbekistan _ Bukhara Textile and Fergana Textile.
KOMSCO has a 65 percent stake in Global KOMSCO Daewoo while Daewoo International controls the remaining 35 percent.