Feb 13, 2019
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Bagir deepens Shandong Ruyi ties with equipment deal

Feb 13, 2019

Clothing maker Bagir has secured an equipment deal with one of its investors, Chinese textiles company Shandong Ruyi, which will allow it to produce up to 500 suit jackets per day.


Shandong Ruyi, which is set to take a majority stake in Bagir for $16.5m, will provide the firm with new and second-hand machinery worth $1.3m for the production of suit jackets.

The manufacturing equipment, provided for exclusive and indefinite use, will be delivered to Bagir’s Ethiopian manufacturing facility during this year, the company announced in a statement on Thursday.

The deal will expand Bagir’s manufacturing capabilities and form the base of a new production line to manufacture suit jackets. The tailoring group is also investing $1.5m to make the new project a reality, with the suit jacket line expected to be fully operative by the end of the first half of 2020.

Bagir, whose manufacturing plant in Ethiopia already produces up to 3,500 suit trousers per day, is aiming to manufacture approximately 3,000 full suits per day in the long term. It said that securing the machinery is the first step towards achieving this goal.

In addition to the manufacturing equipment deal, Shandong Ruyi, an existing supplier of Bagir, has granted an extension of 90 days to their usual credit payment terms on the acquisition of up to 500,000 meters of wool and wool blend fabrics at market value. The extension will last until 30 June 2019.

“The machinery provided will accelerate both Bagir and Shandong Ruyi's commitment to take advantage of the manufacturing opportunity in Ethiopia,” commented chief executive officer Eran Itzhak.

Based in Israel and with offices in the UK and US, Bagir makes clothing for well-known retail brands including H&M and Brooks Brothers.

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