23 June 2009, Kinross - Dawson International’s announcement last
week that it had sold its cashmere spinning division to Chinese cashmere
business Ningxia Zhongyin Cashmere Company has been warmly welcomed by Todd
& Duncan, the 140 year old cashmere spinning business based on the banks of
Loch Leven, Kinross, Scotland.
The move is a first for a Chinese cashmere company to see
potential growth in manufacturing in Scotland and is timely reinforcement of
the cachet that ‘Cashmere Made in Scotland’ represents in times of economic
downturn. Zhongyin recognises the heritage and integrity that the Todd &
Duncan cashmere brand represents and its potential opportunity to accelerate
market share both within its home market and throughout Europe when economic
confidence returns. Zhongyin has supplied Todd & Duncan with cashmere fibre
for over five years. This move now takes the partnership to the next level.
“Zhongyin is a highly profitable and visionary business,”
said James McArdle, managing director of Todd & Duncan. “It is looking way
beyond the difficulties of the current economic climate to a picture of how the
future global cashmere industry will look in a few years time. It is making
this investment now to acquire a business with an unrivalled heritage in the
cashmere industry and making plans to exploit the full potential of the Todd
& Duncan brand as a key element of its future growth strategy. This also
secures our continued access to the Zhongyin cashmere fibre, the finest in the
world, and enables further investment for the future.”
Zhongyin is the largest cashmere dehairing and combing
operation in China and has been ranked number one in the Chinese cashmere
industry since 2004. Founded in 1994 it is a vertically integrated cashmere
business, which has experienced rapid growth. Zhongyin has guaranteed access to
the world’s finest cashmere fibre and has been a supplier to Todd & Duncan
for over five years. It is committed to manufacturing cashmere yarn from a Scottish
manufacturing base and maintaining the traditions and craftsmanship embodied in
the Scottish workforce.
Todd & Duncan will continue to be run by the existing
European management team who were responsible for returning the business to
profit in 2008. This was achieved through a number of strategic actions
including increased sales, stronger margins, improved customer service levels,
product quality and performance and manufacturing efficiency.
Todd & Duncan is Europe’s leading cashmere yarn spinner.
It manufactures on the banks of Loch Leven, Kinross, Scotland and employs
approximately 200 people. It is a world leader in directional colour and
product quality. The company exports cashmere yarn on a global basis to the
world’s top fashion and couture houses as well as top contemporary designers.
Completion, which is expected within ten weeks, is
conditional, inter alia, upon approval of the Kinross site lease by the
landlord’s lender and Zhongyin receiving regulatory approval for the
transaction in China.
