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Esquel establishes third spinning base in Xinjiang
Mar '09
In February 2009, Esquel Group signed an agreement with the Changji State People's Government on the restructuring of Xinjiang Changmian Company Limited. On hand for the signing was Esquel Vice Chairman and CEO, Dr. John Cheh and Mr. Wang Wei, Deputy Governor of Changji and Standing Member of Changji Party Committee.

Held at Urumqi, the signing ceremony marked the establishment of Esquel's third spinning base in Xinjiang. Upon the closing of this acquisition, the Group will have spinning bases in Urumqi, Turpan and Changji.

During the ceremony, Dr. John Cheh commented that, despite the current economic downturn, Esquel believes the Chinese textile industry remains competitive. Esquel's vertical integration will enable the Group to weather the turbulence and to maintain sustainable growth through continuous improvements in management, resource utilization and productivity.

Under the agreement, Esquel will take over all bankrupt assets of Xinjiang Changmian via the newly-formed Changji Esquel Textile Company Limited.

Xinjiang Changmian has been one of Esquel's cotton yarn suppliers since 2004. The cooperation culminated in the recent agreement and provides synergy that will contribute to Esquel's overall efficiency and competitiveness.

Esquel Group

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