Namoi Cotton has signed new agreements with global processing and marketing group Louis Dreyfus that will replace their existing joint venture and see Namoi refocus its activities on cotton ginning and marketing.
The companies have agreed to establish two new joint ventures which together reduce Namoi’s exposure to cotton lint trading and associated debt.
The first the Namoi Cotton Alliance, majority owned by Namoi, will control cotton ginning, grower services and packaging.
The second, to be known as Namoi Cotton Marketing Alliance and majority owned by Dreyfus, will undertake the trading and marketing of cotton lint.
Lint is processed from seed cotton and is used in the manufacture of clothing.
Namoi chief executive Michael Renehan said: “We are delighted to have reached this point in the implementation of the restructuring of our joint venture arrangements with LDC.
“This restructure strengthens our ability to trade and market cotton lint globally and reinforces our reputation as a secure and reliable counter party for Australian cotton growers.”
Namoi Cotton Alliance has three warehouse facilities in Wee Waa, Warren and Goondiwindi.
Picture: Namoi Cotton
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