Investment

Adeosun, Foreign Investor Hold Talks on Textile Industry

  • Adeosun, Foreign Investor Hold Talks on Textile Industry

Dutch textile and design company, Vlisco Group on Tuesday held a high-level discussion with the Minister of Finance, Mrs. Kemi Adeosun, over the former’s proposed investment in the Nigerian cotton textile industry.

The Chief Executive Officer of Vlisco Group, Mr. David Suddens, who led the group’s delegation to the meeting with the minister, said the investment would boost growth and jobs in Nigeria across the entire value-chain from cotton to fashion.

The Group plan to invest across the sector’s value chain from sourcing of cotton, textile printing, wholesale, retail and e-commerce distribution, garment manufacturing and supporting and training of Nigerian fashion designers.

Suddens said: “Vlisco foresees an end-to-end involvement in the Nigerian textile industry from cotton sourcing to retail. We are expecting this investment to yield benefits for the Nigerian economy in terms of economic diversification and job creation in line with the country’s Industrial Revolution strategy.

“Vlisco Group’s activities are expected to generate more than 10,000 jobs in Nigeria in the medium term. We also envisage a Vlisco printing factory in Nigeria using Nigerian designs for the Nigerian consumer, retail outlets selling Vlisco products and trained tailors sewing Vlisco fabric into garmet.”

Suddens further noted that the group had formed partnership with two spinning and weaving companies based in China and Pakistan in order to help build the Nigerian cotton textile industry.

“The two partners are very serious industrialists with first-class operations in their own countries. Both are prepared to move quickly if Vlisco guarantees the purchase of their output, and if agreement can be reached on the details of the Nigerian operation,” a statement further quoted him to have said.

The two partners, according to him, would be expected to start operations with a weaving mill of between 120 and 140 looms, with each mill producing approximately 12 to 15 million metres of cotton fabric annually.

“Once success is established, both partners will integrate backwards into spinning. The first spinning mills will be for 25,000 spindles, producing yarn for approximately 20 million metres of fabric.

“These mills will then be doubled in size to 50,000 spindles and the weaving mills will also be doubled to 240-280 looms for each factory,” the foreign investor explained.

Adeosun, who expressed delight at Vlisco’s proposed investment in the cotton textile industry, said the federal hovernment was committed to the revitalisation of the industry.

She disclosed that the government would stimulate and support sustainable value addition along the entire cotton, textile and garment sub-sector in order to create jobs and wealth for Nigerians and enable technology transfer.

She urged the investor to take advantage of the Nigerian Government’s incentives for the cotton, textile and garment sub-sector to expand its brand portfolio in Nigeria.

The Vlisco Group designs, produces and distributes fashion fabrics for the West and Central African market and African consumers in global metropolitan cities.

Founded in Helmond, the Netherlands, in 1846, the Vlisco Group and their fabrics have grown into an essential part of African culture, receiving widespread attention from the art, design and fashion worlds.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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