Dentons Appointed by Jiangsu Lianfa Textile Co., Ltd.

On March 13, 2018, Dentons Shanghai senior partner Hua Tao and associate Deng Wei signed a legal services agreement with Jiangsu Lianfa Textile Co., Ltd. ("Jiangsu Lianfa") to advise on the company's investment and construction of a textile production base in Ethiopia.

Jiangsu Lianfa (stock code: 002394), formerly known as Hai’an Dyeing and Weaving factory, was founded in 1955. After 60+ years’ development, the company has built up a complete industrial chain from cotton processing to garment manufacturing with world class equipment and machinery, and has grown into a large-scale textile enterprise integrating cotton spinning, yarn dyeing, printing and dyeing, knitting, home textiles manufacturing, garment manufacturing, brand operation, trade, logistic and new energy development. With the second largest yarn-dyed fabric capacity globally and RMB 5 billion annual sales, Jiangsu Lianfa is now one of the leading high-end fabric and garment manufacturers in the world.

The company occupies a total land area of 1 million square meters, employs nearly 10,000 workers, and its fixed assets excel RMB 3 billion. The main products of the company can be divided into 6 categories, including yarns, yarn-dyed fabric, printing & dyeing fabric, knitting fabric, printed fabric and apparels. Every year, the company produces 25,000 tons of yarn, 180 million meters of yarn-dyed fabric, 60 million meters of printing & dyeing fabric, 8000 tons of knitting fabric, 10,000 tons of wool yarn, 30 million meters of home textile and 10 million pieces of clothing. Its products are sold to more than 20 provinces and cities across China and exported to 36 countries and regions including the U.S, Europe, Japan and Southeast Asia.

Jiangsu Lianfa plans to build a cotton textile plant in the Federal Democratic Republic of Ethiopia. The project is planned to be carried out in two phases. Mr. Hua and Ms. Deng, as lead counsels, will work with other team members and lawyers from Ethiopia to provide comprehensive legal services in the aspects of investment, public supply, land acquisition and financing for the project.

So far, the team comprised of Mr. Hua and Ms. Deng has served as legal advisors for several clients' investment projects in Ethiopia, including advising Hua Jian Group on establishing a shoemaking plant and a light industry park in Ethiopia, assisting listed company Jiangsu Sunshine Co., Ltd. in establishing a textile and garment production base in Ethiopia, supporting HuaFang Group's Ethiopian cotton textile project, and helping with Wuxi Talak Textile Group's cotton textile project in Ethiopia.

At present, almost all of large Chinese textile companies' major investments in Ethiopia are advised by this team. By virtue of the team’s deep understanding of Ethiopia’s national conditions and the good working relationship established with the Ethiopian Investment Committee’s senior officials during the work process, the team has established a professional reputation in the field of manufacturing investment in Ethiopia.