Australian Namoi in JV with China state cotton firm

Australia’s Namoi Cotton Co-operative Ltd has entered into a 50-50 joint venture with China National Cotton Group Corp (CNCGC), a China state cotton firm, which will help the Australian firm market its produce across the globe through 2012-2017.

Namoi, Australia’s leading cotton processor, has registered loss this year in spite of the country witnessing record cotton production and high prices of fibre.

The current deal is expected to improve the balance sheet of the Australian cotton processor and place it in a better position to compete with other leading companies in the global cotton trade.

The Australian firm registered a net loss of US$ 58.5 million during the six months ended August 31, 2011, which it attributed to unparalleled volatility in cotton prices and increased cost of borrowings.

The Australian firm recorded loss in spite of the country producing a historic four million bales (4.4 bales = 1 ton) of cotton during the current year.

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