Former Lira Mills Nets $8.7m Export Contract
Apr 15, 2004
A Ugandan company has struck a deal worth $8.7m (about sh17b) to export 5,000 metric tonnes of cotton lint to China.
By Steven Odeu
A Ugandan company has struck a deal worth $8.7m (about sh17b) to export 5,000 metric tonnes of cotton lint to China. This is the biggest export of cotton ever by any Ugandan company to China.
Jinda International Textiles Corporation Limited (JITCO), the Chinese-based company which bought Lira Spinning Mill sealed the deal with several textile companies in Beijing early this year.
The deal to be executed in seven consignments started in March with three shipments accomplished.
This was said by Jing Hong, the chief executive officer of JITCO.
“And we are not stopping at that.
After fulfiling this, we expect another deal of 10,000 metric tonnes. This means more money for our farmers,†Hong said.
The contract to be completed by the end of May has provided farmers with $2.6m through their ginneries.
Another $6.1m awaits the completion of delivery in May.
JITCO is buying cotton from two farmers associations, Nyakatonzi Co-operative Union in Kasese supplying 2,000 metric tonnes, while Dunavat Uganda Limited, a consortium of ginneries from the northern part of the country will supply 3,000 metric tonnes.
Hong, the person behind the project says cotton lint especially that from Nyakatonzi is highly appreciated in China because of its staple length.
“As soon as China gets used to Ugandan cotton, it will be easy to export yarn when we start production at Lira Spinning Mill. For now, we are establishing links. The market is there and farmers just have to produce good quality cotton,†she said.
The development is important because it gives Uganda a foothold in the lucrative Chinese market, which imports 1,000,000 metric tonnes of lint cotton annually.
JITCO bought 100% shares of Lira Spinning Mill in 1999 through court, following long wrangles over the ownership of the mill. The mill by then had been destroyed by looting during the Amin regime.
JITCO, then known as Goustar Enterprises had promised to resume.
Ends
A Ugandan company has struck a deal worth $8.7m (about sh17b) to export 5,000 metric tonnes of cotton lint to China. This is the biggest export of cotton ever by any Ugandan company to China.
Jinda International Textiles Corporation Limited (JITCO), the Chinese-based company which bought Lira Spinning Mill sealed the deal with several textile companies in Beijing early this year.
The deal to be executed in seven consignments started in March with three shipments accomplished.
This was said by Jing Hong, the chief executive officer of JITCO.
“And we are not stopping at that.
After fulfiling this, we expect another deal of 10,000 metric tonnes. This means more money for our farmers,†Hong said.
The contract to be completed by the end of May has provided farmers with $2.6m through their ginneries.
Another $6.1m awaits the completion of delivery in May.
JITCO is buying cotton from two farmers associations, Nyakatonzi Co-operative Union in Kasese supplying 2,000 metric tonnes, while Dunavat Uganda Limited, a consortium of ginneries from the northern part of the country will supply 3,000 metric tonnes.
Hong, the person behind the project says cotton lint especially that from Nyakatonzi is highly appreciated in China because of its staple length.
“As soon as China gets used to Ugandan cotton, it will be easy to export yarn when we start production at Lira Spinning Mill. For now, we are establishing links. The market is there and farmers just have to produce good quality cotton,†she said.
The development is important because it gives Uganda a foothold in the lucrative Chinese market, which imports 1,000,000 metric tonnes of lint cotton annually.
JITCO bought 100% shares of Lira Spinning Mill in 1999 through court, following long wrangles over the ownership of the mill. The mill by then had been destroyed by looting during the Amin regime.
JITCO, then known as Goustar Enterprises had promised to resume.
Ends