British company Plexus Cotton announced in a statement today that it has sold its subsidiary in Mozambique to Fesap – Sociedade Agrícola e Pecuária Limitada, which is owned by Portuguese company Felpinter Indústrias Têxteis.
Plexus, one of the main cotton farming firms in Mozambique, based in Cabo Delgado province, stopped in 2022 and left 80,000 small cotton farmers who delivered the raw material to it in distress.
“After a complex process, a total sale was concluded on May 17,” meaning it includes all assets and liabilities, reads the document from the British firm, which expresses “confidence” in Fesap to conduct the operations.
“I am delighted that we can announce the sale,” said Nick Earlam, chairman of Plexus, which had the operation in Mozambique since 2002.
Felpinter “has been a long-standing customer of Plexus as one of the leading home textile producers in Europe,” he added, highlighting the opportunity for “an integrated approach, from field to product.”
The statement detailed that the cotton business in Cabo Delgado “involves over 80,000 small farmers annually, each producing seed cotton in small quantities”.
The activity generates income “to meet the basic needs of approximately 500,000 people in the region” in which Plexus has two processing facilities “capable of processing over 45,000 tonnes of seed cotton annually”.
Felpinter presents itself as a vertically structured textile company based in northern Portugal, with over 30 years of experience in ‘design’ and manufacturing of home-textile products.
“Its wholly owned subsidiary Fesap has been active in cotton production in Mozambique for several years,” it concludes.
