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Cubbie Ag buys Dirranbandi cotton gin in Australia
Nov '13
Cubbie Ag or CS Agriculture, which is co-owned by Chinese textile group Shandong RuYi and Japanese trading company Itochu, along with Australian wool trader Lempriere Group in the ratio of 80:20, has bought a cotton gin in Dirranbandi from Singaporean trading house Olam International.
The company would spend up to Au$ 4 million by end of March 2014 for repair, maintenance and upgrades at the ginnery so as to enhance its output.
Over the next two years, the company would spend about Au$ 7 million to upgrade the facility and to increase its cotton ginning capacity.
Despite Cubbie now owning the ginnery, Dirranbandi cotton growers would still be able to process their cotton at the gin.
The Dirranbandi region produces about 300,000-350,000 bales of cotton during a season, of which the Cubbie Station accounts for about 200,000-230,000 bales.
Earlier in August this year, Cubbie Station received approval for building an Au$ 30 million cotton ginnery on a 93,000 hectare farm located in Dirrabandi town, but the company will now operate the Dirranbandi gin.
In 2012-13 season, the Cubbie Station, located in Queensland’s southern inland and Australia’s largest cotton enterprise, harvested around 220,000-bale cotton crop, with the yield being better than expected at about 10.5 bales a hectare.

Fibre2fashion News Desk - India

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