Identifier
Created
Classification
Origin
09ASHGABAT1386
2009-10-30 10:11:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: TEXTILE FACTORIES NOT AS PRODUCTIVE AS
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UNCLAS ASHGABAT 001386
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
ANKARA FOR AGRICULTURE COUNSELOR
E.O. 12958: N/A
TAGS: EIND ETRD BTIO EAGR TX
SUBJECT: TURKMENISTAN: TEXTILE FACTORIES NOT AS PRODUCTIVE AS
GOVERNMENT SAYS
UNCLAS ASHGABAT 001386
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
ANKARA FOR AGRICULTURE COUNSELOR
E.O. 12958: N/A
TAGS: EIND ETRD BTIO EAGR TX
SUBJECT: TURKMENISTAN: TEXTILE FACTORIES NOT AS PRODUCTIVE AS
GOVERNMENT SAYS
1. (U) Sensitive but Unclassified. Not for Internet Distribution.
2. (SBU) SUMMARY: The recent inauguration of a new textile factory
in the southeastern city of Turkmenabat was supposed to demonstrate
the progress that Turkmenistan has made in its textile industry.
However, decreasing cotton yields and a lack of trained
professionals to run factories have resulted in Turkmenistan's
textile industry being less productive now than 10 years ago. END
SUMMARY.
3. (U) On October 21, President Berdimuhamedov opened a new textile
plant in the southeastern city of Turkmenabat. The Turkish firm
Engin Group did the construction work and equipped the plant, at a
cost of $85,359,000. The plant is capable of producing 17,700 tons
of cotton yarn per year.
4. (U) According to the Ministry of Economy and Development, 20 new
textile enterprises have been built over the past 16 years,
including five modern integrated textile complexes and 15
cotton-spinning factories. The Turkmen Government has invested over
one billion dollars in their construction. Turkmenistan can process
up to 100,000 tons of cotton fiber per year. (NOTE: The end
products of the textile factories are yarn, denim and other
garments, sheets, and towels. END NOTE.) The value of total annual
textile production exceeds $640 million. Turkmenistan exports
textiles to the United States, Germany, Switzerland, Turkey and
Russia.
5. (SBU) The government intends to build a cotton-spinning factory
in each of the country's fifty cotton growing areas. By the year
2020, Turkmenistan plans to process up to 500,000 tons of cotton
fiber. However, this ambitious plan will be difficult to achieve
because of the declining cotton harvests due to the lack of
irrigation water, soil depletion and poor management. In 2008,
Turkmenistan harvested 1,000,000 tons of seed cotton (the weight
prior to ginning) and produced 300,000 tons of cotton fiber.
6. (SBU) Most of the local textile enterprises were established in
the early 1990s as joint ventures between the Ministry of Textile
Industry and Turkish companies, in which the Turkish managers had a
leading role in operational and commercial issues. The Turks made
significant profits by using cheap Turkmen labor and resources. In
2005, late President Niyazov fired then Minister of Textiles
Dortguly Aydogdiyev for fraud, and ordered that the Ministry get rid
of Turkish managers and directly engage in marketing operations.
7. (SBU) Many Turkish expats who worked in the local textile
industry left the country after Niyazov's edict. Following their
departure, some large textile factories stopped functioning at full
capacity. A specialist at the Ashgabat textile factory told
Pol/Econ staff that the factory stopped producing certain types of
textile products because it did not have a specialist able to run
the software for their production. Local sources confirm that,
since 2006, the quality and selection of Turkmen textile goods has
declined.
8. (SBU) COMMENT: While many locals welcomed Niyazov's order because
they believed the Turks were stealing Turkmenistan's wealth, they
now realize that Turkmenistan does not have home-grown specialists
capable of running modern textile factories effectively. Until the
government implements comprehensive education reform, the textile
industry will continue to lack trained cadres and will have to rely
on foreign professional expertise and knowledge. END COMMENT.
CURRAN
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
ANKARA FOR AGRICULTURE COUNSELOR
E.O. 12958: N/A
TAGS: EIND ETRD BTIO EAGR TX
SUBJECT: TURKMENISTAN: TEXTILE FACTORIES NOT AS PRODUCTIVE AS
GOVERNMENT SAYS
1. (U) Sensitive but Unclassified. Not for Internet Distribution.
2. (SBU) SUMMARY: The recent inauguration of a new textile factory
in the southeastern city of Turkmenabat was supposed to demonstrate
the progress that Turkmenistan has made in its textile industry.
However, decreasing cotton yields and a lack of trained
professionals to run factories have resulted in Turkmenistan's
textile industry being less productive now than 10 years ago. END
SUMMARY.
3. (U) On October 21, President Berdimuhamedov opened a new textile
plant in the southeastern city of Turkmenabat. The Turkish firm
Engin Group did the construction work and equipped the plant, at a
cost of $85,359,000. The plant is capable of producing 17,700 tons
of cotton yarn per year.
4. (U) According to the Ministry of Economy and Development, 20 new
textile enterprises have been built over the past 16 years,
including five modern integrated textile complexes and 15
cotton-spinning factories. The Turkmen Government has invested over
one billion dollars in their construction. Turkmenistan can process
up to 100,000 tons of cotton fiber per year. (NOTE: The end
products of the textile factories are yarn, denim and other
garments, sheets, and towels. END NOTE.) The value of total annual
textile production exceeds $640 million. Turkmenistan exports
textiles to the United States, Germany, Switzerland, Turkey and
Russia.
5. (SBU) The government intends to build a cotton-spinning factory
in each of the country's fifty cotton growing areas. By the year
2020, Turkmenistan plans to process up to 500,000 tons of cotton
fiber. However, this ambitious plan will be difficult to achieve
because of the declining cotton harvests due to the lack of
irrigation water, soil depletion and poor management. In 2008,
Turkmenistan harvested 1,000,000 tons of seed cotton (the weight
prior to ginning) and produced 300,000 tons of cotton fiber.
6. (SBU) Most of the local textile enterprises were established in
the early 1990s as joint ventures between the Ministry of Textile
Industry and Turkish companies, in which the Turkish managers had a
leading role in operational and commercial issues. The Turks made
significant profits by using cheap Turkmen labor and resources. In
2005, late President Niyazov fired then Minister of Textiles
Dortguly Aydogdiyev for fraud, and ordered that the Ministry get rid
of Turkish managers and directly engage in marketing operations.
7. (SBU) Many Turkish expats who worked in the local textile
industry left the country after Niyazov's edict. Following their
departure, some large textile factories stopped functioning at full
capacity. A specialist at the Ashgabat textile factory told
Pol/Econ staff that the factory stopped producing certain types of
textile products because it did not have a specialist able to run
the software for their production. Local sources confirm that,
since 2006, the quality and selection of Turkmen textile goods has
declined.
8. (SBU) COMMENT: While many locals welcomed Niyazov's order because
they believed the Turks were stealing Turkmenistan's wealth, they
now realize that Turkmenistan does not have home-grown specialists
capable of running modern textile factories effectively. Until the
government implements comprehensive education reform, the textile
industry will continue to lack trained cadres and will have to rely
on foreign professional expertise and knowledge. END COMMENT.
CURRAN