Chinese investment in cashmere
The £6.1 million acquisition of Todd & Duncan Limited by China's leading cashmere company demonstrates confidence in Scotland's economy, secures around 200 jobs, and reinforces the country's global reputation for manufacturing luxury textiles, First Minister Alex Salmond said today.
Kinross-based Todd & Duncan boasts a 142 year history of manufacturing high quality cashmere yarn to global fashion houses such as Tom Ford, Zegna Baruffa and Brooks Brothers.
The FM joined Mr Li Jianjun of the Municipal Government of Lingwu, Ningxia, and Mr Ma Shengguo, Chairman of Ningxia Zhongyin Cashmere Company at a special event to mark the deal.
Mr Salmond said:
"Todd & Duncan have a proud history of producing luxury cashmere on the banks of Loch Leven for use in the world's top fashion houses.
"I am delighted that the future of one of Scotland's leading textile manufacturers and around 200 highly skilled employees has been secured by Ningxia Zhongyin, which is China's leading cashmere company, producing fibre, yarn and garments.
"Scotland's cashmere industry employs approximately 4,000 people and contributes almost £200 million to the economy. This acquisition ensures a bright future for Todd & Duncan as one of the world's leading spinners of quality cashmere yarn and strengthens Scotland's global reputation as a leader in luxury fabrics, cashmere knitwear and designer brands.
"The Scottish Government welcomes this £6.1 million investment in the Kinross firm. This investment marks a positive step towards China and Scotland strengthening relationships and working closely to exchange ideas, knowledge, and to develop business opportunities."
Mayor of the Municipal Government of Lingwu Mr Li Jianjun, said:
"Of the 30 cashmere enterprises in Ningxia, China, Zhongyin Cashmere is the most outstanding with great potential for future growth. It is developing customer relationships around the world, which is contributing greatly to the local Chinese economy. The acquisition of the leading cashmere yarn business in Scotland, Todd & Duncan, presents an opportunity with unlimited growth potential and a positive future."
Chairman of Zhongyin Mr Ma Shengguo, said:
"I am very proud to be here, not because of the equipment I have purchased, but because of the excellent product and the quality produced here in Scotland by a skilled and talented workforce. With their support and effort, I believe that we can overcome any challenges that lie ahead and develop Todd & Duncan to its full potential."
Scottish Enterprise Chief Executive Jack Perry said:
"The announcement by Dawson International to safeguard almost 200 jobs following Todd & Duncan's takeover by Ningxia Zhongyin Cashmere Company Ltd is excellent news and a vote of confidence for the Scottish economy at a time when we are all facing the unprecedented challenges of the global downturn.
"The investment further enhances Scotland's reputation as an attractive location for international companies and by working together in the future and strengthening our business relationships, Scotland and China can further benefit from our historical ties.
"Scottish Enterprise looks forward to working closely with Todd & Duncan to help them realise their ambitious plans for growth, while building on the long and distinguished heritage that is Scotland's textiles industry."
Ningxia Zhongyin Cashmere Company Ltd is a cashmere fibre, yarn and garment producers and for the last five years have been Todd & Duncan's biggest fibre supplier. Todd & Duncan was previously owned by Dawson International.
Todd & Duncan formed in 1867 in Alva, Clackmannanshire. The company's key products are Cashmere yarn spinners, supplying a number of high value cashmere garment producers across the world.
Read more about Scotland's textiles sector here.