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Shandong Ruyi inks deal for ultrafine sheep flock
Feb '12
Shandong Ruyi, a leading Chinese textile processing firm, has invested a substantial sum into the ultrafine wool industry of Australia and has signed a deal with an Australian company for breeding a flock of ultrafine sheep.

Few days back, the company inked a Memorandum of Understanding with the Australian Superfine Wool Growers Association (ASWGA). The MoU was for supply of supply of Australian ultrafine wool by ASWGA to the Shandong-province based company.

Further enhancing its trade relations with Australia, the Chinese firm has now signed a 10-year deal with Benalla-based Jema Genetics to grow a significant flock of ultrafine sheep.

According to Jema Genetics, the deal is a big achievement for ultrafine wool growers of Australia.

Shandong Ruyi is looking forward to boost the production of wool and ensure adequate supplies to meet its demand. Thus, to facilitate this objective of the Chinese firm, Jema Genetics would develop a breeding programme in association with Geelong-based Deakin University.

The two companies came in contact when Jema Genetics approached Shandong Ruyi for selling its Jemala Knitwear range. Subsequently, there were further developments and now it is a scientific collaboration in which Jema Genetics would undertake sheep breeding for the Chinese conglomerate.

The Australian firm looks upon the deal as a great opportunity as it would help in stabilising supply and creation of new markets for Australian wool.

Fibre2fashion News Desk - China

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