Bagir Group LTD announced yesterday that it had obtained a USD 16 million investment from Shandong Ruyi Technology Group Co Ltd, a Chinese textiles and clothing company, in order to Expand its Ethiopian site.

According to the company, 359.6 million shares will be issued at a price of 3.5 pence each to Shandong Ruyi and the investment funds will be used to cover the costs related with the development and extension of its manufacturing facility in Ethiopia to enable the facility to attract and compete for major apparel manufacturing contracts from large international retailers.

Bagir’s Chief Executive Eran Itzhak said, "We are delighted to be putting this proposal to our shareholders as we believe it to be transformative, creating a platform from which Bagir has the potential to become a significant player in our market of apparel manufacturing."

Bagir Group is an Israel based tailored-cloth manufacturer which was established in 1961 and which currently operates in 6 countries including Ethiopia. It fully acquired Nazareth Garments S.C. (NGC) in 2017 with a total cost of Birr 44.1 million.

Source: Fana Bc, Alliance News/Morningstar, Addis Fortune, and Bagir.com