China: China''s Wuxi Cotton to set up textile plant in Ethiopia


Wuxi No. 1 Cotton Mill, part of the Guolian Development Group and one of the largest textilemanufacturers in China, has signed an investment agreement with the Ethiopian government to establish an integrated textile plant in Ethiopia. The new plant will be set up in Dire Dawa, the second largest city in Ethiopia, lying around 450 km east of Addis Ababa.Wuxi will invest in a spinning plant and a large scale integrated fabric mill, with production targeted at export markets, according to the investment agreement between Wuxi and the Ethiopian Investment Commission (EIC), signed in Wuxi city in China earlier this month.

Established in 1919, Wuxi No. 1 Cotton Mill has annual weaving capacity of 26,000 tons of yarn and 30 million metres of grey fabric. Hence, the company will bring state-of-the art manufacturing technology, knowhow and excellence accumulated over a span of nearly 100 years to Ethiopia.In addition to creating direct employment opportunities, the Chinese investment will help Ethiopia boost its foreign exchange reserves through exports. It is also expected to create significant linkages in the fast-growing textile and clothing industry of Ethiopia, Chinese media reports said.

At present, Wuxi exports 75 per cent of its products, mainly to Europe, the US, Japan and Asean countries. So, the EIC expects that the investment will assist Ethiopia in becoming a leading player in Africa’s textile and apparel manufacturing sector. 

 



Source: The China Post, China
Monday, 13 November 2017

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