AKIPRESS.COM - President of Mongolia Khurelsukh Ukhnaa visited the Buligaar JSC, which operates in the light industry sector, Montsame reports.

Buligaar JSC operates in shoe upper material production, leather processing, and foreign trade. The company manufactures a variety of leather products with its own semi and fully-processed hides and skins and sells the products to domestic and foreign markets.

"If the leather processing industry is fully supported extensively like "Food Supply and Safety" and "One Billion Trees" National Campaigns and Social Security contributions are renegotiated, the light industry has potential to be developed as a cluster," executive director of the Mongolian Association of Leather Industry T. Bayarsaikhan noted.

President Khurelsukh also visited the "Khos Az" and MARIS LLC on the same day.

"Khos Az" shoe factory has an annual capacity of 100,000 pairs of shoes. The manufacturing of special protection boots for mining companies, the Ministry of Defense, the National Police Agency, the General Authority for Border Protection, and others make up approximately 80% of the shoe production.

The enterprises that took out loans for leather production purchased raw materials and auxiliary materials worth more than 14 billion tugriks, prepared fixed assets of more than 1.2 billion tugriks, and paid taxes of more than 2 billion tugriks in 2022. New equipment for the processing of raw materials of food and agricultural origin, registered as fixed assets of the plant, has received a 100% discount from the customs duty on imported goods until January 1, 2027. The discount covers 426 types of equipment in the food and light industry sector.

More than 3,200 enterprises and factories are operating in the light industry sector including in the fields of wool, cashmere, leather, wood, wooden furniture, sewing products, clothing, printing, packaging, recycling, cosmetics, and household chemicals, and about 44,000 people are employed in the sector. Statistics show that the export of the light industry was $508 million and the import was $703 million by the end of 2022.

Mongolia uses 30,000 tons of wool annually, and the rest goes to waste. President Khurelsukh stated that the issue of wool preparation, supply, processing, production, and sale of final products should be comprehensively resolved and 100% of the wool should be properly used in future. It will lead to positive outcomes, including the improvement of the country's economy, the creation of many jobs, and the improvement of the lives of herders. Therefore, the President instructed the relevant ministers to study and present a proposal for the establishment of a large-scale factory with modern advanced equipment and technologies. The President also urged citizens to support national production.