Menswear supplier Bagir has entered into a strategic partnership with the Shangdong Ruyi Technology Group, one of the largest textile manufacturers in China.
Shangdong Ruyi Group is to invest $16.5m (£12.4m) to buy 54% of Bagir issued share capital and become its majorirty shareholder.
The directors of Bagir stated the deal aimed to “transform the company and its ability to compete and win major apparel manufacturing contracts from the world’s largest retailers”.
The investment will enable Bagir to expand the suit, trouser and jacket production lines at its Ethiopian manufacturing base, as well as enhancing R&D (research and development) and innovation.
Commenting on the announcement, Eran Itzhak, CEO of Bagir, said: “It has been our view for some time that Ethiopia is proving to be potentially transformational. The Shandong Ruyi Group team recognises the strength and experience that we have across our business and it is our advanced position in Ethiopia which they have identified as providing them with a global strategic advantage.
“With Shandong Ruyi Group as a key shareholder and partner we believe that Bagir will be best placed to exploit the opportunity presented by our Ethiopian manufacturing base far quicker and with more certainty than we could independently.”