Top Chinese textile manufacturer to set up plant in Uganda

Kam Hing International Holdings Limited, a renowned manufacturer of knitted fabrics and colour yarn in the world, has expressed interest in setting up a production plant in Uganda.
 
Mr Tai Chin Wen, the owner of the company, which is headquartered in Hong Kong but with a presence in several countries, including the US, said he is ready to visit Uganda and meet government officials to discuss the investment details.
 
He made the pledge to a delegation of Ugandan officials under the Presidential Advisory Committee on Exports and Industrial Development (PACEID) who are in China to attract investors to invest in Uganda.
 
However, Mr Wen sought assurances of a favourable investment climate.
 
“We use a lot of steam, the levels of electricity stability and overall safety and security of the continent. If you can guarantee these things, we will explore the possibility of partnership with the government to source cotton and produce fabrics for the market there,” he said.
 
“We can invest in phases if there are certain guarantees,” he added.
 
 
Mr Odrek Rwabwogo, the PACEID chairperson who led the nine-man Ugandan delegation that included Ambassador Kiema Kilonzo, assured the company about Uganda’s favourable investment climate.
 
 “Uganda is at a critical stage of production increases of all agricultural commodities, a young and highly educated labour force and electricity provision at only USD5cents for manufactures,” he said.
“Next year, when we begin production of oil, we anticipate the beginning of a thriving petrol chemical industry that will provide us with dyes for printing for the cotton industry. If you invest today, you are an early bird and President Museveni will offer you all fiscal and market protection to give the country scale in this sector,” he added.
 
 
The PACEID trade and export delegation toured the textile factory that is established on about 300 acres of land, is listed on the Hong Kong stock exchange and has annual revenues of about $600m. The company, which employs more than 5,000 people, also has production facilities in Enping and Guangzhou regions in the southwest of China.
 
About 90 per cent of Uganda’s cotton is exported in unprocessed form, which leads to the loss of billions of shillings in revenue.