Tashkent, Uzbekistan (UzDaily.com) -- The Italian company Cotonella has successfully exported its first goods to the EU market after moving its production to the Kashkadarya region.

Less than six months ago, Uzbekistan was selected as a new co-sourcing hub by the well-known Italian brand Cotonella, which commands about 98% of the Italian underwear market. The company relocated its production from Europe to Uzbekistan.

Due to a severe manpower shortage, high energy resource prices, and a lack of a domestic raw material base, European textile manufacture is not competitive. Given that the Italian company’s goods are based on cotton textiles, Uzbekistan was an obvious choice given that country has more than 3.5 million tons of raw cotton, relatively cheap energy resources, and a skilled work population.

The Italian company established a new production plant in the Kashkadarya region’s Kukdala area, investing over US$5 million in foreign investments. The company’s first shipment of three different kinds of knitted products for US$100,000 was accomplished in January 2024.

The enterprise was established on the basis of the cotton and textile cluster “Kukdala cluster”, where more than 100 people are employed. The collaboration allows not only to produce quality products, but also to promote the introduction of the brand’s experience in the industry.