Indian Company to Invest in Ethiopian Cotton

India-based CLC Industries plans to begin construction of a spinning mill in Kombolcha, Ethiopia, later this month and will use the fiber produced from 2,500 hectares (ha) of cotton to produce yarn, according to a story posted on 2merkato.com.

The cotton that will feed the $70 million spinning facility is derived from hybrid cotton seeds, which mature in six months of planting. The seed was imported from India, as was much of the technology and machinery used in the plant. More than 1,200 people will be employed when the mill opens, and that number is expected to grow to 3,000 once it is running at full capacity.

CLC Industries will export some of the cotton it derives from the harvest, but about 1,200 tonnes of the lint will be provided to local textile mills in Ethiopia. That country was chosen, the company says, due to its stability, advantageous investment policies, and a five-year tax exemption.