Plexus Sells Cotton Trading Operations To RCMA Group
LIVERPOOL, UNITED KINGDOM
16 Dec 2015
Liverpool-headquartered Plexus Cotton has sold its cotton trading operations to RCMA group. The transfer will be effective from January 11, 2016, and will include the majority of its trading book, customers and suppliers in the markets, with the exception of its China business (Eastern Linkage) and the cotton production and supply chain interests in Africa.
According to a statement from the company, the move will allow for a greater focus on the expansion of Plexus’ African operation. Plexus aims to increase the centralisation of its cotton supply chain by building integrated and sustainable value chains for the commodity, from seed development to end product.
“I am immensely proud of the trading operations we have built up over the last 25 years, but the market has changed. I believe that to move the business to the next level, it needs the impetus, drive and investment which RCMA will provide. Equally, I strongly believe that the model we are building in Africa is the future for all sustainable cotton supply,” says Nick Earlam, Plexus’ chief executive.
RCMA chairman Doug King comments on the acquisition: “[Plexus’] business and team will be a real asset to RCMA and key to the continuous growth of our commodities business.” RCMA will combine the Plexus cotton trading operations with its current cotton business, currently operating under the Tong Teik subsidiary, to form a newly combined company, RCMA Cotton.