China Africa Cotton Mozambique Ltd. (CACM) has begun the process of setting up a cotton ginning unit at Subue, in Sofala province of the Southeast African nation of Mozambique. The new cotton ginnery, being set up at a cost of US$ 6 million, will have an initial capacity to process about 30,000 tons of raw cotton, according to Mr. Hu Xiuxiang, the representative of the Chinese firm, macauhub reported. At the foundation laying ceremony, Mr. Hu said increased cotton production in Sofala province had led the board of directors of China Africa Cotton to decide on setting up a cotton ginning unit. He requested the Mozambican Agriculture Minister, José Pacheco, who was present at the ceremony, to take measures for power supply at the location, so that the ginning unit can become operational as soon as it is built. The new facility is expected to boost cotton production in Sofala, the largest cotton producing province in Mozambique.
During 2011-12 cotton season, Safola harvested around 9,000 tons of cotton, which earned around 19 million meticals in revenues. Both the output and earnings were higher than previous season's output of 3,000 tons that fetched around 4 million meticals. CACM is a wholly owned subsidiary company of China-Africa Cotton Development Ltd in Mozambique. The company believes in extending China-Africa friendship, developing African agriculture and improving local farmers' living condition.
CACM has purchased the French cotton company C.N.A, which operated more than 100 years in Mozambique. As a result, CACM has become one of the three largest cotton planting and processing enterprises in Mozambique.
