New Textile Factory in Khankendi Marks Milestone in Azerbaijan–Uzbekistan Partnership

A newly opened textile factory in Azerbaijan’s Khankendi city has emerged as a powerful symbol of deepening economic and investment ties between Azerbaijan and Uzbekistan.

The project was implemented on the direct instructions of Azerbaijani President Ilham Aliyev and Uzbek President Shavkat Mirziyoyev, marking a milestone in the countries’ strategic cooperation, The Caspian Post reports, citing local media.

The factory, jointly operated under the “Businesstex JV” initiative, is already making strides in boosting Azerbaijan’s light industry and enhancing regional employment opportunities.

Currently, the factory produces:

150 types of men's clothing

300 types of women's clothing

150 types of children's clothing

Future product lines will include men’s shirts, workwear, and military uniforms. At present, the factory manufactures 2,500 units of knitwear per day, with plans to scale production to 10,000 daily units. Around 80 per cent of the output is intended for export.

In its first phase, the factory employed 250 workers, all of whom received professional training. Total employment is expected to reach 500, with a strong focus on hiring returnees to Azerbaijan’s liberated territories and residents from nearby areas.

The project launched with an initial investment of 6 million manats ($3.5 million), supported by a 3.5 million manat concessional loan ($2.05 million) from the Azerbaijan Business Development Fund under the Ministry of Economy. It also benefited from tax and customs incentives worth approximately 640,000 manats ($376,470).

Raw materials are being sourced both domestically and from Uzbekistan, Türkiye, and China, further enhancing industrial cooperation across the region.

During an official visit on July 3, President Aliyev and President Mirziyoyev toured the factory, underscoring the high-level political support and mutual commitment to expanding economic integration between Baku and Tashkent.