“Uzbekistan’s leather industry is very ambitious despite being a young country. Our industry has made a tremendous leap in 7 years and has become the leader in the footwear and leather industry in Central Asia.”
As Magazine Leather Team, our country profile interview about “Uzbekistan Leather and Leather Products, Fur and Sustainability” with Mr. Boboev Fakhriddin Atoevich, former President of Uzbekistan UZCHARMSANOAT Association.
Mr. Boboev Fakhriddin Atoevich, first of all, we wanted to know more about you?
Allow me to express my gratitude for your interest in the Uzbek leather and footwear industry. For us it is a recognition of the growth and development of Uzbek leather industry in Turkey. As for me, I was born on 1 January 1964 in Navoi region. From 1984 to 1989, I received higher education at the Bukhara Institute of Food and Light Industry Technology. In 2000 I graduated from the Academy of State and Social Construction under the President of the Republic of Uzbekistan with a master’s degree. In 2000-2004 I studied at the National University of Uzbekistan, specializing in law. Now I am defending my doctoral thesis in economic sciences (PhD). In general, for me the item “education” has always had a very great importance, as for myself personally, family and in the Association, I always attach great importance to science, I support any initiative, if it is connected with education and science. This is what I see the future for. As for my career, I started my labor activity in 1977. I held managerial positions in many state organizations. From 2011 to 2018 I worked in the Cabinet of Ministers of the Republic of Uzbekistan. And after that I moved to the “Uzcharmsanoat” Association. During the period of leadership of the Association, I had a great honor to observe and directly participate in the processes of transformation and formation of the industry.
“UZCHARMSANOAT”, can we get to know the association? And what are its objectives?
“Uzcharmsanoat” Association was established on the basis of “Uzbekcharmpoyabzali” Association in accordance with the Decree of the President of the Republic of Uzbekistan No. 3693 dated 3 May 2018 “On measures to further stimulate the development and growth of export potential of leather, footwear, fur and wool industries”.
Today, the Association unites over 700 enterprises engaged in slaughtering livestock, processing of leather raw materials, production of footwear, leather haberdashery, components and accessories, chemicals for footwear and leather industries and other products. Intra- and inter-industry co-operation has been established and continues to develop. The essence is that companies of the same or different profiles unite in realization of a common ambitious goal. An example is the leather and footwear clusters operating in the industry, which concentrate in one complex all stages of production: “from procurement, processing of leather raw materials to the production of finished products”, saving time and money and working for quality.
The Association helps its enterprises and entrepreneurs wishing to develop their business in the leather and footwear sector to develop their business ideas in relation to demand, raw materials and production potential. Practical assistance also covers the search for foreign investors and attraction of investments. By now, co-operation has already been established with the International Council of Tanners, the International Fur Federation, national associations and councils of leather industry in a number of countries, such as Turkey, Italy, Russia, as well as with leading trade fairs around the world.
The Association is active in the spectrum of training of new highly qualified personnel. In this direction, links are established with leading universities of Turkey, Great Britain, Russia, and practical assistance is provided in the development of specialized faculties of regional universities. Gifted graduates are given opportunities to realize their potential in the best enterprises of the country.
The main goals and objectives of the ASSOCIATION are, firstly, to develop intra-industry co-operation, i.e., to link different parts of the industry with each other. Within the framework of intra-industry co-operative relations, mutual supplies of natural leather, soles, synthetic leather, components (sole, counter), glue, PVC, fittings, polyurethane and PFC insoles, DOP plasticizers and other goods, raw materials and consumables for the industry enterprises have been established.
Another task of the Association is to establish import substitution and localization processes. Today more than 70 enterprises, which are members of the Association, are engaged in production of localized products. We have mastered the production of such goods as artificial leather, shoe lasts, various types of soles, chemicals, gelatin, polyurethane, glue, plasticizer DOP, raw materials EVA.
Also, we support local producers. On a systematic basis, we conduct marketing research of domestic and foreign markets in the segments of leather-footwear, leather goods, fur, karakul and wool products, provide support in expanding the export potential of the industries, wide implementation of modern methods of raw material processing and production of finished products using the latest innovative developments in modelling and branding, as well as advanced information technologies and automated management systems.
We promote the development and implementation of new investment projects. For 2024-2026 it is envisaged to implement 1,050 investment projects for the total amount of USD 2.6 billion for creation of new enterprises, modernization and reconstruction of existing ones. Also, the Association assists in obtaining loans from the Fund for Reconstruction and Development of the Republic of Uzbekistan for the purchase of modern new equipment and technologies for up to 7 years, including a three-year grace period with an interest rate of 5% per annum.
We are actively working on qualitative integration of science, education and production. We serve as a bridge between industry enterprises and the state.
We are also active in increasing the geography of exports. Today, leather and footwear products under the brand “Made in Uzbekistan” are supplied to more than 45 countries of the world, including Turkey, Russia, Portugal, China, UAE, USA, Brazil and others.
Within the framework of the current legislation, we defend the rights and legitimate interests of the enterprises, which are members of the Association, including in relations with state and economic authorities, local authorities, in the process of inspections by controlling authorities, as well as in the consideration of cases in courts.
Do you conduct research on sustainability as your activity in the leather and leather products sector? What do you think about this issue?
The Uzbek leather industry is a rather young industry in our country. It has received its development since 2017. And if we compare indicators, in 2016 we produced only 478 million square decimeters of leather, 60% of which was “wet-blue”. Only 1% of semi-finished leather was sent for further processing, while 99% was exported.
Today in Uzbekistan more than 100 enterprises are engaged in deep processing of leather raw materials. They produce an average of 2.5 billion dm of leather per year. The total number of enterprises in the leather and footwear industry is close to 2,000.
Today, the structure of both production and export looks somewhat different. Already more than half of semi-finished leather products are further processed inside the country. At the end of 2023, exports of “wet-blue” raw materials have been reduced to 14.3% (in 2017 this figure was 85%). Thanks to a large-scale programme to modernize and re-equip leather and footwear enterprises, a full cycle of deep leather processing has been established.
In parallel, the production of footwear, clothing and leather goods made of natural leather is developing. In the current year alone, 291 investment projects totaling USD 655.6 million have been launched in the republic, aimed at expanding the production of finished leather goods and localizing the production of components and chemicals for the industry’s enterprises.
In 2023, the industry’s enterprises produced 246.4 million pairs of footwear, 2,472 million square dm of leather and 153.7 billion UZS of leather goods totaling UZS 11.5 trillion (over USD 1.0 billion). Leather semi-finished products and leather, as you can see, are also in demand inside the country. Thus, for the needs of production of finished products with high added value, the supply of leather raw materials from Tajikistan, Kazakhstan, Turkmenistan and Kyrgyzstan has already been organized.
Today, measures are being taken to create not just individual enterprises, but entire industrial clusters that will concentrate the entire production cycle, including the production of leather to finished leather goods. A “raw materials hub” is being created in the republic to provide the industry’s enterprises with the necessary quality raw materials. That is, we have reached the level when it is profitable not to sell raw materials, but to buy them. The measures taken to develop the industry in the republic will soon allow us to fully process raw materials procured not only within Uzbekistan, but also by all Central Asian countries.
What are your pre-event preparations for “UzCharmExpo”?
“UzCharmExpo” is an industrial international exhibition, which has managed to turn into a certain brand in Central Asia. And such a result, of course, requires not just pre-event preparation, but work on a permanent basis. In the course of participation of the Association in international exhibitions in different parts of the world, as well as in business missions abroad and business forums, we separately work out the issues of attracting more potential partners, participants and buyers to “UzCharmExpo”. Currently, representatives from more than 50 countries have applied for participation in “UzCharmExpo”. The last two exhibitions were held in partnership with our Russian colleagues from “Shoes Star” and “Zhejiang Donnor International Exhibition Co.”, the largest exhibition company in the leather and footwear industry of China. An exclusive contract was concluded with this company, which ensured the participation of a delegation of Chinese companies at “UzCharmExpo-Eurasia 2023”. Now we are actively working with our colleagues from Turkey to increase the presence of Turkish companies at future exhibitions of “UzCharmExpo”.
Do you participate in international exhibitions as “UZCHARMSANOAT”?
“UZCHARMSANOAT” Association and its member enterprises regularly take part with a collective stand in international exhibitions. These events give a great impetus to the development of the industry, as international exhibitions give an opportunity to enterprises to grow qualitatively, products under the brand “Made in Uzbekistan” are improved and meet international requirements, export of Uzbek products is expanding. “Uzcharmsanoat” Association with the support of the Export Promotion Agency under the Ministry of Investment, Industry and Trade took part in more than 40 international exhibitions around the world, such as Aysaf (Turkey), Central Asia Fashion (Kazakhstan), “Izmailovo Shoes” (RF), Linappele (Italy), The International Fur & Leather Expo (Republic of Korea), Polshoes Footwear Days (Poland), China (Wenzhou) Int’l Leather, Shoe Material & Shoe Machinery Fair (PRC), Fashion Style Russia (RF), Elite Line 2023 (Kazakhstan), Kiosh (Kazakhstan), Innoprom (RF), APLF ASEAN (Thailand), China International Import Expo-2023 (PRC) and BIOT (RF). Also actively participated in business missions organized to Turkey, Vietnam, Egypt, PRC, Italy, USA, Republic of Belarus, Republic of Korea, Afghanistan, Azerbaijan, Hungary and others. More than 200 kinds of products manufactured in the industry were widely demonstrated at overseas exhibitions and visits, and memorandums of cooperation with foreign companies and organizations were concluded.
How do you assess the leather industry in Uzbekistan in terms of domestic and international markets?
Although Uzbekistan is a country with a young leather industry, it is very ambitious. Our industry has made a colossal leap in 7 years, becoming the leader in footwear and leather industry in Central Asia, and boldly occupies leading positions in the CIS. And not only in terms of quantitative indicators, but also in terms of quality our products show themselves competitive in these markets. Today, though measured, still confident steps we are going to the markets of Europe and America. At this stage we supply leather and footwear to all CIS countries, Turkey, Canada, USA, UAE, Italy, Austria, Korea, Poland, Portugal, Cameroon, Lebanon, Thailand, Pakistan, India and other countries.
What would you like to say about artificial intelligence and technology for the leather and footwear industry, tanneries, automation and technology?
Artificial Intelligence is increasingly entering and taking its place in every area of the economy, industry and just life. I think in the very near future many tasks will be delegated to artificial intelligence, from product and shoe design to sales execution. We already know that some shoe companies in the world are already effectively implementing the capabilities of neural networks. We are now conducting our own research in this direction. We are planning to organize seminars and trainings for entrepreneurs on the use of AI capabilities in the leather and footwear industry. I think that in the near future Uzbekistan will soon see models of shoes and bags designed with the use of future technologies.
Do you have any activities in the Academy as a family “UZCHARMSANOAT”?
The Association “Uzcharmsanoat” is a big family, which unites 700 members – enterprises of leather, footwear and fur industry. In addition, the Association itself includes a subsidiary organisation “Design Markaz”, which organises and conducts events, including the international exhibition “UzCharmExpo”. The “Uzcharmsanoat” Association has also opened representative offices in Russia and Turkey, which serve as an effective bridge for expanding co-operation, implementing new investment projects and expanding trade and economic co-operation. The trade houses of the Association and our member enterprises are also operating. They are opened in such countries as Latvia, Azerbaijan, Hungary, Russia, Tajikistan, UAE and Kazakhstan.
Do you have co-operation and activities with universities for international sector staff? (Regarding trained qualified staff and skilled personnel)
Support of science and education, their integration with production, assistance in training of qualified personnel is one of the priority tasks of the “Uzcharmsanoat” Association, as it is people who shape the industry. Yes, we attach great importance to technical and technological equipment of enterprises, assist in modernization processes. But no technology can bring proper results and produce the required volumes and quality if they are not backed by highly qualified engineers and technologists, talented, creative and modern designers. In order to nurture such personnel, we are in close co-operation with higher educational institutions of the country. We have also established partnerships with foreign universities. Five universities in Uzbekistan train specialists with higher education. Joint educational programmes have been launched with EGE University of Turkey and Vitebsk State Technological University of Belarus, where our students receive education and diplomas from two universities at once. There are also training and retraining programmes with such universities as the British Northampton University and the Russian A.N. Kosygin Russian State University and St. Petersburg State University of Industrial Technologies and Design. In addition, there are special training programmes for retraining personnel together with vocational colleges of our republic.
And finally, what would you like to say to people who have dedicated themselves to this profession?
I would like to say to people who are in our profession, in our field or whatever, that we should pay as much attention as possible to education and science. I repeat, they are the future. We live in the age of high technology, rapid development and transformation, and it is important to always keep your hand “on the pulse”, to be in the trend, to understand and accept the current, and not to hold on to outdated foundations, it is easier to let innovations and novelties into your life and company activities, to be open to innovations. At the same time, do not forget about the most important thing – people! They are the backbone of any company and organization. After all, a talented and professional team can bring unprecedented results that no technology or artificial intelligence can give. It is necessary to pay special attention to human resources, to create the best conditions for growth and realization, to train and develop them, to give room for creativity and self-expression, because our countries are very rich in talents. They should be given the opportunity to express themselves.