Posco International CEO visits Uzbekistan to check global supply chain
Posco International CEO Joo Si-bo, right, poses with Governor Bozorov Hayitbayevich of Fergana region, after discussing plans to establishing raw cotton cluster in Uzbekistan, at the governor's office in Fergana, on May 11. Courtesy of Posco International
By Kim Jae-heun
Posco International CEO Joo Si-bo visited Uzbekistan from May 9 to 12 to check the company's global supply chain there, while meeting with Governor Bozorov Hayitbayevich of the region of Fergana to discuss their plans to establish a raw cotton cluster in the Central Asian country, the company said, Thursday.
The cotton cluster refers to the Uzbekistan government's project to invite companies to cultivate the crop and establish a stable supply chain.
Posco International erected a spinning plant in Uzbekistan, the world's sixth-largest cotton exporter in 1996, and has been operating a total of five manufacturing facilities producing thread and textiles in the regions of Fergana and Bukhara. The company posted a $37-million operating profit last year from its cotton business in Uzbekistan.
In March, the trading company also secure 5,210 hectares of raw cotton cultivation areas in the capital area of Fergana region, believing that they are necessary to increase the added value of the cotton business.
It has plans to open a cotton processing plant there by the end of this year to complete the value chain from harvesting cotton to manufacturing yarn and fabric.
In addition, the company acquired the Recycled Claimed Standard (RCS) and Global Recycled Standard (GRS) certifications from the Control Union, an eco-friendly certifying agency, to follow the green trend in the textile business, last November.
“Uzbekistan's cotton business has gained further momentum by creating a cotton cluster and obtaining eco-friendly certifications. As Uzbekistan's representative foreign investor company, we will seek mutual growth with the local community too,” company CEO Joo said.