Olam subsidiary to build cotton ginning plant in Mozambique

US$6mln factory to increase Olam Mozambique production to 60.000 tonnes and workforce to 75,000.

The company Olam Mozambique, a subsidiary of Olam International Singapore, is planning to build a new cotton ginning factory in the district of Mossurize, in the central Mozambican province of Manica.

The project, to be launched this year, is budgeted at about six million US dollars to be invested by Olam Mozambique that holds cotton concessions in four provinces, namely Zambézia, Manica, Tete in the central region and Nampula in the north.

According to the daily 'Noticias', the new plant which should be commissioned by the first quarter of 2011 will employ at least 200 Mozambicans.

At present, the owner of the project is importing the necessary equipment for the plant.

Vjwalkanta Venapati, managing director of Olam Mozambique, said that the company intends, in the medium term, to position itself at the top of the largest cotton producers in Mozambique by increasing its production from 12,000 to 60,000 tonnes.

The construction of the factory seeks to avoid the reliance on third parties for ginning once cotton production has reached the targeted 60,000 tons.

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