Hong Kong textile giant Esquel, supplier of Nike and Hilfiger, suspends operations at spinning mill as new coronavirus cases spark lockdown of Xinjiang’s capital
- Esquel, one of the world’s largest cotton shirt makers, is closing a spinning mill in Urumqi temporarily as the city in western China goes into lockdown amid a return of coronavirus
- The clothes maker was one of six companies in Xinjiang singled out for potential US in March, after it was accused of using forced labour
Esquel, one of the world’s largest cotton shirt makers, says it will close a mill in Urumqi as the city of 3.5 million people in western China shuts down amid the return of coronavirus.
The Hong Kong-based textile manufacturer, which has achieved US$1.3 billion in revenue and produces more than 100 million garments annually, said it will close its spinning mill in Urumqi from July 17 because of new lockdown measures in the city.
“Due to the lockdown, our hundreds of workers in the Urumqi plant cannot go back to work,” said a spokesperson for Esquel.
Urumqi, the capital of China’s Xinjiang region, went into sudden lockdown on Thursday after confirming one new local Covid-19 patient and three asymptomatic cases.
In a move to cut off the channel of transmission, the city shut down its only subway line on Thursday evening and restricted airport arrivals and departures.
Esquel has three spinning mills, established in the region in 1995, 1998 and 2009, respectively. It also has two cotton ginning mills built in 2003, which separate raw cotton fibre from seed parts.
The company said its other facilities, including the ginning mills in Akesu, are operating as normal.