Investment opportunities / By Industry

Furniture Industry

FAYZ Holding Company founded on the basis of the parent enterprises of JV FAYZ LLC and it is a leading structure-forming industrial unit in the economy of the Republic of Uzbekistan specializing in furniture production, source materials and utility for furniture and woodworking. From the perspective of the technological and engineering equipment status, this is the largest and top production complex in the Central Asian Region’s furniture production and woodworking goods system. The Company has a thirty-year development history. It embraces 25 enterprises including 17 industrial ones with 9 joint ventures with contribution of IFC group of the World Bank, Malaysia, Germany, UAE, Slovenia, Italy, South Korea, Turkey and Latvia.

The Company equipped with a latest complete woodworking plant of German manufacture due of which producing furniture conform to world standards by quality. JV FAYZ LLC holds a certificate of “Quality Management System for Design and Production of Furniture, Laminated Chip Board (LCB) and Polyurethane Foam” that meets requirements of O'Z DSt ISO 9001:2009 (ISO 9001:2008), as well as 12 conformance certificates of services on manufacturing consumer goods (wood laminas, chipboards, melamine film, foam-rubber, tulle and curtain fabric) and furniture, 7 hygienic certificates.  Technical specifications for consumer goods of three sets, enterprise standards of two sets, as well as workflows and drawings for all manufactured range of commodities have been developed.

There is an active stock of normative documents used in production:

 - intergovernmental standards (GOST) – 20 descriptions, 5 of them harmonized with international ISO standards;

 -   normative documents of industrial level (TSh) – 3;

 -  standards of enterprises (KSt) – 2.

In addition to aforesaid normative documents, the Company is guided in its operations by fundamental normative documents of Uzbek state standardization system, Uzbek state measurement assurance system, uniform design documentation system and other standardization systems. The normative documents’ collection of Company is comprised of 1,537 intergovernmental standards.

Manufacturing of goods by Company’s enterprises mainly has been carrying out according to intergovernmental standards.

Key areas of FAYZ HC activity include production of furniture and componentry for the furniture industry, a wide range of consumer goods such as furniture, mineral water and beverages, fabric, water dispersible paints, wooden toys, table tops and windowsills, door and window frames, four-sided pipes, molded articles, cellular boards and sandwich panels, LCB (laminated chipboards), simulated wood veneer, polyurethane foam of varying density, banding, façade elements from MDF and for furniture, furniture fittings, and orthopedic and polyurethane foam mattresses of any sizes.

In a word, the resource base has been put in place for small and private businesses and their manufacturing activities.

The Holding has been working to diversify production with the view of successful development of the holding and adjustment for changing market conditions. Therefore, in recent 4-5 years, manufacturing of goods such as tulle and curtain fabric and furniture upholstery, water dispersible and varnish paints, sandwich panels, mineral water and various beverages. Annual production output for the Holding amounts to 14 million in US$ equivalent has been launched. 

The priority development program of FAYZ HC for 2011 - 2015 provides for the implementation of four investment projects for the amount of US$ 4 million. 

These include:                                                                                                 

1. Setting up production of melamine film, film with a finishing effect, and banding   (production will start in the 1^st quarter of 2011);

2. Setting up production of polyurethane foam boards for sandwich panels (production will start in the 4^th quarter of 2011);

3. Upgrade and renovation of equipment for the production of spring mattresses (production will start in the 3^rd quarter of 2012);

4. Setting up production of PolyVinylChloride (PVC) banding for furniture (production will start in 2014).

Implementation of the planned measures aimed at development of the Holding will result in the increase in the manufacturing of industrial products from 23.6 billion Uzbek Soums in 2010 to 38 billion Uzbek Soums in 2015 due to new capacities to be introduced under the projects included in the program among others.

Key priority of the Company’s sustainable growth is systematic activities concerning attraction of foreign investments by launching joint projects with foreign partners. This is evidenced by the fact that the share of foreign investments in the total volume of the authorized capital totals 54%.

Placing a focus on diversification of production taking into account a new line of activity – interior design – along with furniture production, FAYZ Holding Company has established a joint Uzbek-Malaysian Joint Venture Fayz Mint Plaza specializing in production of water dispersible paint on acrylic basis. The enterprise is fitted out with high-speed and highly technological equipment for the production of 9 types of façade and universal silicone paints of high whiteness. A new varnish paint production line with higher quality indicators has been purchased to develop production and increase the range of products.

A new Uzbek-Turkish JV “FayzAkroteks” with a 50-percent share of foreign investments specializing in production of drapery, tulle and curtain fabric and furniture upholstery from synthetic yarn (polyester) has been established under the program for production diversification. The enterprise was commissioned in August 2008. In eighteen months of production, the enterprise manufactured a total of 2.5 million square meters for the amount of over 3 billion Uzbek Soums.

In 2009, Fayzli Nur LLC started production of sandwich panels, while the production output amounted to 2 billion Uzbek Soums.              

In 2007, a new enterprise Akvofayz LLC was established to produce mineral water and various beverages with an annual production output of 1 million Uzbek Soums.