Itochu acquires stake in Chinese textile company Shanshan Ltd

27 Feb '09

1 min read

The Japan based conglomerate, Itochu Corp, which had sales of ¥ 2,861 billion in fiscal ending March 31, 2008, has declared its intent to acquire a 28 percent stake in Shanshan Co Ltd, China with an estimated investment of 758 million Yuan. 25 percent of the stake will be held by Itochu Corp, Japan and the rest 3 percent by its Chinese subsidiary Itochu (China) Holding Co Ltd.

Itochu Corp has a thriving textile division, with subsidiaries in China, Hong Kong, Europe and the US. It has operations across the whole value chain from fibre to apparels across various product categories and is also a market leader in a few of them in its home markets. The Ningbo based, Shanshan has achieved a turnover of 11.8 billion Yuan in 2008.

Itochu is expected to gain from the strong brand presence of Shanshan in Chinese markets and build a portfolio of its own, while Shanshan will thrive from the distribution network and technology adapted by Itochu as well as its rich experience of operating in international markets. Shanshan also wants to have an international presence.

Fibre2fashion News Desk - India

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