Shandong Ruyi eyes US market with new acquisition
24/11/2017
Bagir’s manufacturing plant in Ethiopia, which it purchased earlier this year, is believed to be one of the key motivating factors for Shandong Ruyi. It is seeking to find alternative production locations in light of the increasing cost of manufacturing in China.
It chose to purchase Bagir, and so its plant in Ethiopia, rather than build its own. Another advantage of manufacturing in Ethiopia is that the country benefits from duty-free access to the US through the African Growth and Opportunity Act (AGOA).
It is Shandong Ruyi’s third acquisition in the past month. At the end of October, it agreed a deal to purchase the apparel and advanced textiles (A&AT) business of polymer and fibre manufacturer Invista. Bloomberg has reported that the deal, which includes the Lycra and Coolmax fibre brands, is worth more than $2 billion.
Shandong Ruyi followed that up by paying more than $280 million for a majority stake in Hong Kong-based apparel retailer Trinity.
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