To counter the threats of a forced labor ban on the use of Chinese cotton a Chinese garment exporter has purchased one of the largest Australian farms to cultivate cotton for its apparel products.
The Shanghai Stock Exchange has reported that Gundaline was purchased by the Zhejiang Sunrise Garment Group which owns the Hong Kong-based Smart Shirts Ltd. The land was made when the Chinese firm emerged as the highest bidder with a bid of $120 million.
Gundaline is a huge farm comprising approximately 14,916ha. It features 6000ha of first-class flood irrigation with secure access to surface and groundwater entitlements. Moreover, it has huge water storage which is in excess of 17,000 megalitres.
The Australian lawyer overseeing the auction refused to divulge the name of the new buyer but one of the officials did confirm the cotton operation on Gundaline is part of the purchaser’s long-term strategy. This aimed at providing full transparency and traceability from field to garment for its customers. Sources said that the Chinese who have bought it are garment manufacturers. They use Australian cotton and this deal would make them fully vertically integrated.
Earlier a Dutch firm acquired the property in 2020 but because of covid-19 uncertainties, it backed out of the market in July 2020. Gundaline has the distinction of being the first few properties to achieve carbon-neutral accreditation for its cotton production. The new owners have indicated that they would ensure to keep the carbon footprint of the property under control.
