GOYO LLC, which is one of the oldest cashmere producers in Mongolia has developed a new development policy which is aimed at expanding the operations and delivering quality products.
In 2017, Mongolia's goat population reached 27 million, accounting for 47% of the world's cashmere or 9400 tons of raw cashmere, but only about 12% were processed into finished value-added products and 88% were only primarily processed and exported.
GOYO LLC expects to increase the level of the processing of cashmere, increase the type of products to be produced, increase the quality of finished yarns and increase exports by investing 55 billion MNT or the US $ 22.5 million.
With this investment, four new factories will be commissioned, the capacity of yarn factories and knitting factories will be increased, and the number of equipment will be upgraded as well.
In the previous years, we produced 80 tons of raw materials, 40 tons of yarns and 100,000-110,000 knitted yarns per year. During this year by opening new factories, we will have produced 400 tons of raw materials, 160 tons of yarns and 400,000 knitted yarns. In 2018 we will become a major producer in the cashmere industry with 5 times the capacity.
By the end of 2017, we had 292 employees. Now with the new plants, expanding and capacities being increased, we will triple the labor force and by the end of 2018, there will be 972 employees. In doing so, GOYO is making a significant contribution of job plots which is currently one of the leading problems for the people in Mongolia
According to the development strategy plan, by 2021, national producer GOYO LLC and GOBI LLC will have provided jobs for 8000 people, each produced about 2,000 tons of raw material (4000 tonnes per year) and produced 3 million products each year, accounting for 40% of Mongolia's total raw cashmere preparation and 20% of the world cashmere market.