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: Global Times, China Tuesday, 14 November 2017