Tigon's Cotton Business Set To Achieve 1000% Growt
Share Code:TGN
ISIN Code :ZAE000022240
Media Release
Tigon's Durban-based cottonwool operations are well on the road to attaining
growth of over 1000% since the financial services group acquired 50% of the
business some two years ago. The three companies - Cotton King, Dyecomber
and Bella Cotton - have now completed a major program of plant expansion and
development. Late last year, Cotton King achieved ISO9001 (2000)
accreditation, opening the door to increased exports.
The original Cotton King operation manufactures a full range of basic
cottonwool products for all leading brands and supplies the majority of the
South African retail market as well as the majority of the country's
hospitals, clinics, pharmaceutical companies and the printing industry.
Cotton King also supplies some of largest retailers and manufacturers of
cottonwool in the UK as well as Europe and expects to soon receive its first
export orders to Australia. Following a supply tender by Sainsbury's, one
of the UK's largest retail chainstores, the company recently passed the
resulting audit by them, and first deliveries are expected to commence
during April/May.
The expansion and modernisation during the course of last year of the
Dyecomber plant, which bleaches and dyes cotton comber, has resulted in the
company supplying virtually the entire needs of the local market as well as
exporting to the UK, France, Italy and South America and their product has
been approved by a pharmaceutical company which is one of the largest buyers
of bleached combers in Europe. Forecast exports put Dyecomber in the
enviable position of having more anticipated demand than it can meet and
should have the plant running at full capacity before the end of the year,
as Dyecomber is perfectly positioned to increase exports not only to
existing customers but to new overseas markets.
The latest addition has been the development of the only earbud
manufacturing plant in the region - Bella Cotton - in a joint venture with
French group Lemoine, who are the world market leader. "This is potentially
the most exciting development of all," enthuses Peter Bilro, the energetic
entrepreneur who originally purchased Cotton King almost four years ago from
Island View Holdings, and, with the assistance of Noel Oberem, has brought
the business to where it is today. The add-on value of this product is huge
and Bella Cotton is the lowest cost producer in the Lemoine group. The
earbud business is worth R6 billion a year worldwide, of which Lemoine has a
20% market share. Bella Cotton's new plant commenced production last year
and demand for its product is such that plans are now in place to install a
second plant.
The key to maximising profitability has been to develop world-class end
products with a high add-on value from low-cost raw material and thereby
benefit from the lucrative export markets. Tigon plans further development
at this end of its cottonwool business.
Ends.
ISSUED Tigon Limited
FOR :
CONTACT: Peter Bilro Cell: 083 450 1423
Gary Porritt Tel : 033 394 2854
FAX NO : 033 394 2218
E-MAIL : Tigon@tigonlimited.com
ISSUED TISH STEWART PR ASSOCIATES
BY :
CONTACT: Tish Stewart (011) 325 4195 / 083 443 6399
FAX NO : (011) 325-4199
E-MAIL : Tish@tspr.co.za
DATE : 17 January, 2002
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