Wuxi No.1 Cotton Mill, part of the Guolian Develoment Group and one of the largest textile manufacturers in China, has signed an investment agreement with the government of Ethiopia to establish an integrated textile industry in Dire Dawa. The company will bring to the country a state-of-the art manufacturing technology, knowhow and excellence accumulated over a span of 100 years.
The company currently has a weaving capacity of 26,000 tons of yarns and 30 million meters of gray fabrics yearly.
The company is known for supplying leading global brands where 75% of its products are mainly exported to Europe, America, Japan, Korea, and Southeast Asia.
The investment agreement between Ethiopian Investment Commission (EIC), representing the Ethiopian Government, and Wuxi No.1 Cotton Investment Co., Ltd., was signed on November 2nd 2017, in a signing ceremony held in Wuxi City, China.
During the signing ceremony, Abebe Abebayehu, Deputy Commissioner of EIC, stated “This investment would contribute immensely to our government’s vision to build a sustainable, vertically integrated and export-oriented, apparel and textile manufacturing hub in Ethiopia. Indeed, our vision is to make Ethiopia the leading manufacturing hub in Africa.”
According to a press release EIC sent to FBC, the company has agreed to invest in a large scale and integrated fabric mill and spinning plant to be located in Dire Dawa City. Its production targets the export market.
In addition to creating direct employment opportunities and earning the country valuable foreign exchange from export, this investment is expected to create significant backward and forward linkages in the fast growing textile and garment industry of the country.
The project will purchase raw materials such as cotton from local sources and process them into yarns, therefore, creating better market opportunities for large scale cotton production in the country.