China Development Bank provides RMB 10 million loan to Xinxiang Kuroda Mingliang Leather Co. Ltd. for working capital purposes (Linked to Record ID#60645)

Project narrative

On November 24, 2010, the China-Africa Development Fund (CADF) and Xinxiang Kuroda Mingliang Leather Co. Ltd. (or Xinxiang Heitianmingliang Leather Co Ltd. or 河南黑田明亮公司 or 河南黑田明亮制革有限公司) jointly held a celebration of the establishment of the China-Africa Overseas Leather Products in Sululta, a town in Oromia State. The total equity investment from CADF and Xinxiang Kuroda Mingliang Leather Co. Ltd. was RMB 170 million (see Record ID#60645). In October 2010, China-Africa Overseas Leather Products completed plant construction and equipment installation, completed fixed asset investment, and conducted trial production. Xinxiang Kuroda Mingliang Leather Co. Ltd. then applied for an RMB 20 million loan from the Qinghai Branch of China Development Bank (CDB) due to a shortage of working capital to maintain the company's operations. On November 18, 2010, CDB's Qinghai Branch disbursed RMB 10 million as part of the China-Africa Small and Medium Enterprises Loan Program (对非中小企业专项贷款). However, in early 2017, the China Africa Overseas Leather Products Factory (Tannery) in Sululta was abandoned. As of October 2017, 400 soldiers from Ethiopia's Ministry of Defence (MoD) reportedly moved into the factory’s premises without any formal process. China-Africa Overseas Leather Products was shut down by the Sululta City Administration for allegedly polluting the environment in early 2017. Since then, the tannery has been under the watch of its local employees after being abandoned by its Chinese managers and other operational teams.