Just 1 Billion 300 Million Of The Joint Venture Shares To Indonesia Hao, Revealed In The Ethiopia Textile Project New Trend!

In May 17th, the Jiangsu Lok FA textile Limited by Share Ltd (hereinafter referred to as "Lian FA joint-stock") issued a notice on positioning the "local middle class cost-effective fabric shirt supplier". In November 29, 2016, the government of the Ethiopia, which was represented by the company and the Ethiopia Investment Committee ("EIC"), and China Civil Engineering Construction Corporation (the "middle earth group") signed a memorandum of understanding on the development of the textile and garment industry in Ethiopia.

After several times of due diligence investigation and site evaluation of the site of the joint venture, and many communication and discussions with the Ethiopia Investment Committee and the China earth group, the company believes that the development of the textile and garment industry in dredawa is likely to have a long investment recovery period and a low investment return rate, which is not in line with the company's external investment and risk control requirements.

Therefore, the joint venture company decided to terminate the above cooperation intent agreement, and when the future conditions are ripe, we should consider the investment matters in Ethiopia.

According to a reporter's announcement, he is located in the northeast of Ethiopia. It is one of the two municipalities directly under the central government of Ethiopia (another is the capital of Addisababa), with a population of about 400 thousand. It is the largest city closest to Djibouti port.

The only modern electric railway in Ethiopia built and operated by China Civil Engineering Construction Corporation is Delle Dava, and the Ethiopia government has plans to pform Delle Dava into a domestic light industry manufacturing center.

According to the agreement, the joint venture will build a textile and garment industry chain at the DDW Industrial Park, including fabric factories, garment factories and spinning mills.

The reporter learned that the project of the textile and apparel industry chain of the joint venture group in the DDDA Industrial Park covers an area of 90 hectares. Of them, the dyeing and dyeing factory expects that the monthly production capacity is 2 million 500 thousand meters. The yarn dyed fabric factory expects that the monthly production capacity is 2 million 500 thousand meters. The garment factory expects total monthly production capacity of 3 million, and the spinning mill is expected to have a size of 200 thousand spindles.

At that time, the joint stock company has disclosed that the agreement is only a tentative initial investment scale. The scale and investment schedule of the specific project are verified by the company and determined by the three party negotiations. After that, the company will be phased in and implemented step by step according to the needs.

Earlier, it was learned that with the continuous rise of domestic labor costs, the joint stock company actively complies with the trend of industrial pfer, gradually pferring capacity to low-cost Southeast Asian countries, and has jointly invested (acquired) Lian FA garment (Kampuchea) company, AMM garment (Kampuchea) company, and Lian FA Heng Yu (Kampuchea) clothing company, and plans to pfer the joint garment production capacity to Lian FA Heng Yu.

At present, the joint venture AMM garment is fully operational, while the joint venture Heng Yu's capacity utilization rate is 50~60%, and it can achieve full production in 2017.

In addition, due to the abundant labor resources in Africa, raw materials, land and other low production costs and enjoy certain tariff preferences, Ethiopia will be the focus of the joint venture shares in the future layout of the layout area.

However, in the evening of May 16th, Luen FA announced that in order to make full use of Indonesia's resources, labor and customer advantages, expand the local and international market of high-end woven fabrics and enhance the competitive advantage of the company in the field of high-grade woven fabric manufacturing, the company intends to invest in Indonesia's PT Ungaran Sari Garments ("PTU") to invest in the construction of an annual 66 million m high grade woven fabric.

The total investment of the project is estimated to be US $190 million 43 thousand (the final investment amount is subject to the approval amount of the relevant authorized departments). It will be divided into two phases. The first stage will form an annual production capacity of 36 million Beige weaving, and the second stage will form the capacity of printing and dyeing cloth with an annual output of 30 million meters.

The announcement shows that PT Ungaran Sari Garments was established in September 24, 1975 and has been in operation for over 40 years.

The company is currently one of the largest garment manufacturers in Indonesia, supplying men, blouses and skirts to the world's leading brands.

The company has more than 28700 employees, 9 production bases, 30 factories and 2 water washing plants, producing 50 million kinds of garments each year.

According to public information, the company has the production scale of 210 thousand spindles of spinning, annual production of 160 million meters of dyed cloth, 60 million meters of printing and dyeing cloth, 11 million pieces of garments, and 6000 tons of knitted yarn and knitted fabric dyeing. In 2018, the company achieved operating income of 4 billion 168 million yuan, up 4.12% over the same period last year, and realized operating profit of 508 million yuan, up 11.4% over the same period last year.