1 PRIME MINISTER OYUN-ERDENE VISITS EGIIN GOL HYDROPOWER PLANT PROJECT SITE WWW.MONTSAME.MN PUBLISHED:2025/04/30      2 ‘I FELT CAUGHT BETWEEN CULTURES’: MONGOLIAN MUSICIAN ENJI ON HER BEGUILING, BORDER-CROSSING MUSIC WWW.THEGUARDIAN.COM PUBLISHED:2025/04/30      3 POWER OF SIBERIA 2: ECONOMIC OPPORTUNITY OR GEOPOLITICAL RISK FOR MONGOLIA? WWW.THEDIPLOMAT.COM PUBLISHED:2025/04/29      4 UNITED AIRLINES TO LAUNCH FLIGHTS TO MONGOLIA IN MAY WWW.MONTSAME.MN PUBLISHED:2025/04/29      5 SIGNATURE OF OIL SALES AGREEMENT FOR BLOCK XX PRODUCTION WWW.RESEARCH-TREE.COM  PUBLISHED:2025/04/29      6 MONGOLIA ISSUES E-VISAS TO 11,575 FOREIGNERS IN Q1 WWW.XINHUANET.COM PUBLISHED:2025/04/29      7 KOREA AN IDEAL PARTNER TO HELP MONGOLIA GROW, SEOUL'S ENVOY SAYS WWW.KOREAJOONGANGDAILY.JOINS.COM  PUBLISHED:2025/04/29      8 MONGOLIA TO HOST THE 30TH ANNUAL GENERAL MEETING OF ASIA SECURITIES FORUM WWW.MONTSAME.MN PUBLISHED:2025/04/29      9 BAGAKHANGAI-KHUSHIG VALLEY RAILWAY PROJECT LAUNCHES WWW.UBPOST.MN PUBLISHED:2025/04/29      10 THE MONGOLIAN BUSINESS ENVIRONMENT AND FDI: CHALLENGES AND OPPORTUNITY WWW.MELVILLEDALAI.COM  PUBLISHED:2025/04/28      849 ТЭРБУМЫН ӨРТӨГТЭЙ "ГАШУУНСУХАЙТ-ГАНЦМОД" БООМТЫН ТЭЗҮ-Д ТУРШЛАГАГҮЙ, МОНГОЛ 2 КОМПАНИ ҮНИЙН САНАЛ ИРҮҮЛЭВ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/30     ХУУЛЬ БУСААР АШИГЛАЖ БАЙСАН "БОГД УУЛ" СУВИЛЛЫГ НИЙСЛЭЛ ӨМЧЛӨЛДӨӨ БУЦААВ WWW.NEWS.MN НИЙТЭЛСЭН:2025/04/30     МЕТРО БАРИХ ТӨСЛИЙГ ГҮЙЦЭТГЭХЭЭР САНАЛАА ӨГСӨН МОНГОЛЫН ГУРВАН КОМПАНИ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/30     "UPC RENEWABLES" КОМПАНИТАЙ ХАМТРАН 2400 МВТ-ЫН ХҮЧИН ЧАДАЛТАЙ САЛХИН ЦАХИЛГААН СТАНЦ БАРИХААР БОЛОВ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/30     ОРОСЫН МОНГОЛ УЛС ДАХЬ ТОМООХОН ТӨСЛҮҮД ДЭЭР “ГАР БАРИХ” СОНИРХОЛ БА АМБИЦ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/30     МОНГОЛ, АНУ-ЫН ХООРОНД ТАВДУГААР САРЫН 1-НЭЭС НИСЛЭГ ҮЙЛДЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/29     ЕРӨНХИЙ САЙД Л.ОЮУН-ЭРДЭНЭ ЭГИЙН ГОЛЫН УЦС-ЫН ТӨСЛИЙН ТАЛБАЙД АЖИЛЛАЖ БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/29     Ц.ТОД-ЭРДЭНЭ: БИЧИГТ БООМТЫН ЕРӨНХИЙ ТӨЛӨВЛӨГӨӨ БАТЛАГДВАЛ БУСАД БҮТЭЭН БАЙГУУЛАЛТЫН АЖЛУУД ЭХЛЭХ БОЛОМЖ БҮРДЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/29     MCS-ИЙН ХОЁР ДАХЬ “УХАА ХУДАГ”: БНХАУ, АВСТРАЛИТАЙ ХАМТРАН ЭЗЭМШДЭГ БАРУУН НАРАНГИЙН ХАЙГУУЛЫГ УЛСЫН ТӨСВӨӨР ХИЙЖЭЭ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/29     АМ.ДОЛЛАРЫН ХАНШ ТОГТВОРЖИЖ 3595 ТӨГРӨГ БАЙНА WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/29    

Events

Name organizer Where
MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

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Train tickets from Mongolia to Europe now available www.montsame.mn

Ulaanbaatar /MONTSAME/. Citizens traveling to the Russian Federation and other European countries can now purchase their train tickets from the Ticket Office of the Ulaanbaatar Railways JVC.

More specifically, it is now possible to book and purchase round-trip railway tickets to all railway stations in Russia, alongside countries of the Commonwealth of Independent States, Europe, and some cities of China from the Ticket Office.

The railway company aims to make their services more accessible and accelerating the further development of selling online railway tickets by improving their servers and systems. With the launch of the railway ticket booking application on smartphones, the company reports that the number of passengers that purchased their tickets online increased by 4-5 times compared to last year.

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Ex-Kyrgyz President Almazbek Atambayev charged with murder www.bbc.com

Kyrgyzstan's former President Almazbek Atambayev has been charged with murder and plotting a government coup.

He has also been accused of organising mass unrest and hostage-taking.

Mr Atambayev was arrested last week in a dramatic police raid on his house that left one officer dead.

The Central Asian state has seen two revolutions in less than two decades and is caught in an escalating conflict between the ex-president and his successor Sooronbai Jeenbekov.

On Tuesday, the general prosecutor said Mr Atambayev had been charged with "unlawfully carrying a weapon", "murdering a special forces officer", "taking hostages" and "organising mass unrest".

The head of the National Security Services, Orozbek Opumbayev, said the former leader had the "intention to organise a state coup".

Mr Atambayev's dramatic detention after two raids on his compound on 7 and 8 August saw one officer killed and six officers held hostage by his supporters before he finally surrendered.

Some 80 people were injured and 53 others hospitalised during the operation.

Mr Atambayev served as president of the former Soviet republic between 2011 and 2017. The current president, Sooronbai Jeenbekov, had initially been a protege of Mr Atambayev but the two have since fallen out.

Relations between the pair soured after the transfer of power, and observers say Mr Jeyenbekov moved to sideline his predecessor politically last year by removing Atambayev loyalists from positions of power.

Parliament stripped Mr Atambayev of his immunity in June so that he could be sent a subpoena to appear as a witness in a case involving the unlawful release of a Chechen crime boss in 2013. He has ignored three subpoenas from the interior ministry.

But he is also accused of multiple incidents of corruption - all of which he denies. He has ignored orders to surrender to police for questioning, characterising them as illegal.

Kyrgyz Republic
Capital: Bishkek
Population 6 million

Area 199,900 sq km (77,182 sq miles)

Major languages Kyrgyz, Russian

Major religions Islam, Christianity

Life expectancy 67 years (men), 75 years (women)

Currency som

Kyrgyzstan is a Central Asian republic that became independent with the collapse of the Soviet Union in 1991. It is about two-thirds the size of the United Kingdom, but has a population of just six million - most of whom are Turkic-speaking Muslims.

The country remains relatively poor, with a GDP per capita on par with Cameroon or Kenya. Dissatisfaction with the government has meant a lack of political stability since independence - the first two post-Soviet presidents were deposed after waves of mass protests.

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Trump targets legal migrants who get food aid www.bbc.com

US President Donald Trump's administration is to make it more difficult for poorer legal migrants to extend their visas or gain permanent resident status (a green card).

The rule targets migrants who rely on public benefits, such as food aid or public housing, for more than a year.

Their applications will be rejected if the government decides they are likely to rely on public assistance in future.

The rule change would reinforce "ideals of self-sufficiency," officials said.

The new regulation, known as a "public charge rule", was published in the Federal Register on Monday and will take effect on 15 October.

Who will be affected?
Immigrants who are already permanent residents in the US are unlikely to be affected by the rule change.

It also does not apply to refugees and asylum applicants.

Those who do not meet income standards or who are deemed likely to rely on benefits such as Medicaid (government-run healthcare) or housing vouchers in future may be blocked from entering the country.

Those already in the US could also have their applications rejected.

An estimated 22 million legal residents in the US are without citizenship, and many of these are likely to be affected.

Civil rights groups have said the move unfairly targets low-income immigrants. The National Immigration Law Center (NILC) has said it will sue the Trump administration to stop the regulation from taking effect.

But the White House said the current system favours immigrants with family ties rather than those who "are self-sufficient and do not strain our public resources".

A change that fits Trump's larger goal
Although much of Donald Trump's rhetoric during the 2016 presidential campaign was directed at what he saw as the dangers of undocumented immigration, it has been clear for some time that this is just part of a larger goal to reduce US immigration levels in total - both illegal and legal.

Since his inauguration, Mr Trump has cut the number of refugees admitted to the US each year. The White House blocked a Senate compromise immigration proposal in January 2018 in part because it did not include changes to the legal immigration system.

During those negotiations, Mr Trump reportedly made comments about preferring immigrants from places like Norway, rather than "shithole" countries.

Now the administration is making it more difficult for less affluent individuals to obtain legal US residency - or perhaps even enter the country at all.

This sets up an election clash next year between a president sharpening and broadening his immigration rhetoric and Democrats, many of whom have said they believe all immigrants, legal or otherwise, should be eligible for public aid.

Why is the rule change happening?
President Trump has made immigration a central theme of his administration. This latest move is part of his government's efforts to curb legal immigration.

"To protect benefits for American citizens, immigrants must be financially self-sufficient," a White House statement read after the rule change was announced.

It said two-thirds of immigrants entering the US "do so based on family ties rather than on skill or merit".

More than three-quarters (78%) of households headed by a non-citizen with no more than a secondary school education used at least one welfare programme, it added.

Ken Cuccinelli, the acting director of the US Citizenship and Immigration Service, announced the regulation at a press conference on Monday.

He said finances, education, age, and the level of an applicant's English-language skills will all be considered in green card applications. "No one factor alone" will decide a case, he added.

The Trump administration has also cracked down on illegal immigration. Last week, about 680 people were arrested in Mississippi on suspicion of being undocumented migrants.

Pictures emerged of children crying after being separated from their parents. Officials said they took steps to ensure any children were properly cared for.

The number of would-be migrants apprehended at the US southern border with Mexico has been rising over the last two years.

However, the number of undocumented immigrants in the US is falling, according to recent analysis from the Pew Research Center.

In May, President Trump put forward proposals for a new skills-based immigration system, designed to favour younger, better educated, English-speaking workers.

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Southeast Asia poised for export boost from new US tariffs www.asia.nikkei.com

SINGAPORE -- Southeast Asia will likely enjoy a boost in exports from the new U.S. tariffs on China announced recently, with more companies diverting production and shipments through the region in order to avoid higher rates.

But the trade war could prove a double-edged sword. Shipments to China, Southeast Asia's biggest trading partner, are seen suffering, and it is unclear how the region will fare once the dust has settled.

On Aug. 1, U.S. President Donald Trump announced a 10% tariff on $300 billion of Chinese products starting Sept. 1, which is expected to affect a wide range of consumer goods such as clothing and shoes. Southeast Asian businesses see big opportunities in the likely drop in Chinese shipments.

"Indonesia is expected to enjoy an increase in textile and garment exports to the U.S. in the wake of the new U.S. tariffs," said Ade Sudrajat, chairman of the Indonesian Textile Association.

Indonesian industry representatives visited Washington in July, before Trump's announcement, and agreed to ship more textiles to the U.S. in exchange for increased imports of American cotton, Ade said.

"Thai food exports to the U.S. are expected to rise substantially" if the new tariffs take effect, said Pimchanok Vonkorporn, head of the Thai Commerce Ministry's trade policy and strategy office.

Evaluating U.S. tariffs' impact on Asian economies, Morgan Stanley said in a research note on Aug. 5 that Vietnam and Indonesia notched notable gains in non-tech-segment exports to the U.S. amid the levies on Chinese goods.

Exports from Southeast Asian countries -- Malaysia, Thailand, Indonesia and the Philippines -- are also comparatively sheltered from the new U.S. tariffs, compared with economies with "higher trade linkages with China" -- such as Hong Kong, South Korea and Taiwan, which have seen their share of global exports dented by Sino-American trade tensions, the report said.

Consumer goods such as clothing and food tend to have narrow profit margins, which means a 10% tariff is a heavy blow for Chinese products. And because they do not require specialized know-how, they can easily be replaced by alternatives.

Many Southeast Asian countries have enjoyed a boost in exports to the U.S. since last summer, when Washington imposed three rounds of tariffs on China. Vietnam's exports jumped 27.4% from a year earlier in January-June. Thailand and Singapore logged 17.4% and 4.8% increases, respectively.

Production itself is shifting to the region as well. "We're getting phone calls here several times a week now with big multinationals, who are in fact now finally looking to supply chains," said Asian Trade Center Executive Director Deborah Elms.

Even those that were sitting on their hands are starting to act. The new tariffs will only accelerate the trend, Elms said.

But the deepening trade war could further cool Southeast Asian shipments to China. A decline in Chinese exports to the U.S. means China will need less raw materials and parts from Southeast Asia.

Thailand, Indonesia, Singapore and Malaysia all saw exports to China decline on the year in January-June. The trend threatens to squeeze the region's growth as a whole.

There is also the risk that Chinese companies start diverting products originally intended for the U.S. to Southeast Asia, upsetting the supply-demand balance there.

"There will be a negative impact from Chinese products flooding Indonesia. So the question is, what will our trade balance look like?" Ade said.

Nikkei staff writer Alex Fang in New York contributed to this report.

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EV sector will need 250% more copper by 2030 just for charging stations www.mining.com

While it is a known fact that electric vehicles (EVs) use about four times more copper than gasoline-powered vehicles, short-term demand for the metal won’t come from the car industry, but from the charging stations and related infrastructure needed to support EV growth, a new study shows.

According to Scottish consultancy Wood Mackenzie, there will be more than 20 million EV charging points by 2030, consuming over 250% more copper than in 2019. But the forecast would only become a reality if more private and public investment is allocated.

The EV charging infrastructure ecosystem is very complex, and most projects require strong partnerships between both public and private stakeholders to deploy the necessary infrastructure, the research notes.

Not only electric utilities, but equipment makers, software and network providers, as well as governments and non-governmental organizations will need to join efforts, the report reads.

In North America alone, the EV infrastructure market will total $2.7 billion by 2021 and $18.6 billion by 2030, according to the report.

“By 2040, we predict that passenger EVs will consume more than 3.7 million tonnes of copper every year. In comparison, passenger internal combustion engine (ICE) vehicles will need just over 1Mt,” says Henry Salisbury, WoodMac research analyst. “If we look at cumulative demand, between now and 2040 passenger EVs will consume 35.4Mt of copper – around 5 Mt more than is required to meet current passenger ICE demand.”

Currently, less than 1% of the world’s vehicles are electric, but by 2030 EVs are expected to make up approximately 11% percent of new car sales.

Consumption from the car industry will also weigh on demand, but later. An average gasoline-powered car uses about 20 kg of copper, mainly as wiring. A hybrid needs about 40 kg and a fully electric car has roughly 80 kg of copper (176 pounds).

The amount goes up as the size of the vehicle increases. For example, a fully electric bus uses between 11 and 16 times more copper than an ICE passenger vehicle — depending on the size of the battery and the actual bus.

This means, in the next decade, global copper demand will increase between 3 and 5 million tonnes, experts seem to agree. Once electric vehicles become popular, they estimate demand to reach 11,000,000 tonnes of new copper for EV’s alone, with potential upside in other green technologies.

Practical and psychological barriers
While EVs are getting cheaper and able to go farther on a single charge, consumers face the challenge of being able to charge their vehicles on long trips.

Gas stations are everywhere, the process of refuelling is fast and there is rarely any need to plan these kinds of stops ahead of time.

EV charging stations are far from being that common. Despite advances in charger and battery technologies, it still takes much longer — about 30 minutes with today’s fast chargers — to recharge a car battery than to fill up the tank.

“As it stands, range anxiety – worrying that a battery will run out of power mid-journey – is a key psychological barrier standing in the way of more widespread EV adoption,” WoodMac’s Salisbury says.

“One way to address this is to roll out more charging infrastructure. As this happens, more connections to the electrical grid will be required and more copper will be needed as the network expands,” he notes.

Salisbury also believes copper will benefit from the fact that there are not viable alternatives to it. The metal’s physical properties make it the best to conduct electricity and it can comfortably accommodate the higher temperatures common to EVs.

“Aluminum is the closest alternative,” Salisbury says. “However, despite it being lighter and almost three times cheaper, copper comes up trumps on size and efficiency. An aluminum cable needs to have a cross-sectional area that is double the size of any copper equivalent to conduct the same amount of electricity.”

Copper is also a key element in green technologies and renewables, which despite being adopted at a fast pace, still represent only a minor percentage of the world’s total energy production.

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New Sainshand-Altanshiree rail carries first passengers www.montsame.mn

Ulaanbaatar /MONTSAME/. It has been recently reported that a construction of railroad between Sainshand city of Dornogobi aimag and Altanshiree soum has completed. Last weekend, the first passenger train ran on the newly-commissioned 27,7 km long railway. The railroad was built to reach Altanshiree soum, where the first oil refinery of Mongolia with a capacity of 1.5 million tons per year is currently being developed.

Ulaanbaatar Railway joint venture, which built the railway and four other Mongolian companies, Taivan Khairkhan, Bilegt Zam, Khurdnii Zam and Torgon Khargui worked as sub-contractors of the railway dam and other infrastructure works started building the railway in June 2018 to finish in only eight months.

Head of the Cabinet Secretariat of Government and Minister of Mongolia L.Oyun-Erdene witnessed the historic first passenger transportation of the new railway. The railway, with 1520 mm track gauge and capacity of 1.53 million tons of freight, is chartered for transportation of heavy-duty equipment and construction materials for the oil refinery, which is being built within the framework of the cooperation between Mongolia and India by an Indian soft loan of 1 billion USD. The construction of the oil refinery is planned to finalize by 2022.

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Tavantolgoi-Zuunbayan railway construction goes smoothly www.montsame.mn

Ulaanbaatar /MONTSAME/. Last weekend, President of Mongolia Kh.Battulga worked in Dornogobi to become acquainted with the development works of Tavantolgoi-Zuunbayarn railroad, being built in Mandakh soum of the aimag. As reflected in a document “State Policy on Railway”, a 414.6 km long road from Tavantolgoi coal mine in Tsogttsegtsii soum of Umnugobi aimag to Zuunbayan, Dornogobi aimag is presently under construction. Thanks to the railway, Tavantolgoi’s coking coal’s sole market dependency will end and around 40 deposits along the railway line, that are not under exploitation yet, will be utilized and their products will be supplied to international buyers at international market price. Also, the railway expected to help reduce widespread problems, such as degradation of pastureland, dust and soil pollution and bring positive social and economic changes to the food, agriculture and tannery industries.

Corresponding officials reported to the President that the railway construction project is continuing without hindrance. Personnel of the General Staff of the Mongolian Armed Forces and 7781st military unit of the Mongolian army are taking part in the construction works with 8 companies as sub-contractors and 4 companies of geology and geodetic control using around 210 machinery and equipment.

D.Sumiyabazar, Minister of Mining and Heavy Industry, who accompanied the President to Dundgobi aimag, noted that there are 37 deposits of mineral resources of special license along the 30 km long area of the Tavantolgoi- Zuunbayan railway, including Tavantolgoi coal mine, Kharmagtai copper-gold mine, Manlai coal mine as well as Kharaat Mountain, Tukhum and Dadiin Khar Mountain and Dulaan mountain with coal, copper, gold and gypsum resources. According to the Minister, total value of the deposits mentioned here reaches MNT 6 billion. Therefore, he said that the new railway will not only carry coals from the Tavantolgoi deposit, but also it will allow transportation from other deposits in the area in order to put them into economic circulation.

During the construction project, a total of 3700 people are estimated to be provided with employment and 1352 machinery to be used. Furthermore, 10 thousand people and their families will earn income from supply of materials, techniques, drinking water and food throughout the project period.

During his working trip in Dornogobi, President Kh.Battulga also visited the construction site of a 15 km long railroad in Zuunbayan and an extension of Zuunbayan station, a part of the Tavantolgoi-Zuunbayan railway construction. The extension is being built at the Zuunbayan station as the railway to Tavantolgoi will be connected to the rail line at 49.4 km line of the Zuunbayan station. The extension work is being performed by military personnel of the 7781st unit of the army.

The military unit crew working at the building site told that they have done excavation and earthworks on 59040 m3 land, over-fulfilling the scheduled works to 127 percent. Minister of Road and Transport Development B.Enkh-Amgalan said “Military troops’ highly effective and responsible organization has had a great influence on the advancement in the construction. Some technical issues related to the construction will be discussed at a cabinet meeting next week”.

At the end of his visit to the construction sites, President Kh.Battulga expressed his gratitude toward every person taking part in the development works and requested them to finish the project on time.

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160 Mongolian students graduate from Cuban Universities www.news.mn

More than a hundred Mongolian youngsters have graduated from higher education institutions in Cuba, the Cubaminrex website reported.

Since the triumph of the Cuban Revolution six decades ago, 160 Mongolian students have received their degrees in specialties such as medicine, stomatology, engineering, pharmacy, sports, among others, on the Caribbean island.

In Ulaanbaatar, Cuban Ambassador Raul Delgado handed the confirmation to three young Mongolians selected to join the educational programme that Cuba offers to the Asian nation. Two will receive free medical training and a third will study biochemistry, joining 16 of their compatriots currently studying at Cuban universities.

Mongolia and Cuba are set to celebrate the 60th anniversary of the establishment of diplomatic relations in 2020.

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Mongolia's photojournalism program attracts 20 from 6 countries www.xinhuanet.com

ULAN BATOR, Aug. 12 (Xinhua) -- More than 20 domestic and foreign photojournalists from six countries are taking part in an international photojournalism program, which kicked off here on Monday.

The second edition of the program, named "Mongolia Today," is co-organized by Mongolia's national news agency Montsame, the United Association of Mongolian Photographers, the Council on Mongolian National Brands and Ulan Bator governor's office.

"The goal of this project is to promote Mongolia and its history and traditions through photos to the world, to create a positive image of Mongolia and enrich foreign media's photo archives with new photos of modern Mongolia," the organizers said at the opening ceremony of the program.

During their one-week stay in Mongolia, photojournalists representing China's Xinhua, Russian TASS and RIA Novosti, Mongolian Montsame, Turkish Anadolu, Japanese Tokyo News and South Korean Yonhap will take a photo tour from the capital to Tuv, Khentii and Dornod.

Photographs of the tour will be displayed at an exhibition scheduled for Aug. 20.

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Cashmere’s journey from Mongolia to Multrees Walk www.heraldscotland.com

THE marriage between Mongolia and Multrees Walk - the Edinburgh avenue where Harvey Nichols and Louis Vuitton are neighbours - has to be sustainable, says Simon Cotton.

The chief executive of the luxury knitwear firm Johnstons of Elgin - which has just opened a flagship store in the Scottish capital’s exclusive shopping precinct - has set up a critical link between its mills and the cashmere farmers of Mongolia who supply the raw materials for their products that are sold under their own brand and for names like Burberry, another Multrees neighbour.

The 222-year-old firm is also investing in its Scottish future with a new £500,000 development centre set to open in Hawick later this year where it will centralise the design of new techniques and new types of fabric.

Mr cotton, 49, said there is growth across the company, which now has five stores in the UK, with others located on London’s Bond Street, in mills in Hawick and Elgin, and in St Andrews, and a further store could follow.

He said: “There’s two sides to our business. We have our own brand, and that’s about a third of our turnover.

“We have the private label business where we manufacture for other brands. Both sides have been growing.

“On the private label side, it’s been about having fantastic relationships with the best brands in the world, which we are doing very well, and we make iconic products for them, which the customers want.”

The firm tends not to mention private clients but customers such as Burberry are happy to make the association in their accounts.

“On the brand side, it has been very much about that new consumer interest in authenticity, and brands that have a provenance and a history.”

The firm sources merino wool mostly from Australia and cashmere from China, Mongolia and Afghanistan.

He said: “I was involved in the setting up of an organisation called the Sustainable Fibre Alliance.

“Ourselves and a few other companies set this up to work in Mongolia particularly on the sustainability of cashmere, and just making sure that the nomadic herders that produce it are able to deal with issues like the challenges of global warming, because they’ve got warming there of 2.8C.

“That’s affecting the grassland, increasing animal numbers are affecting the grassland. The nomadic herding practices that have been in place for centuries really now have to deal with a lot of new challenges.

“Cashmere is a great, romantic story. You know, wild goats roaming the grasslands and all that stuff. But if we want that to be around for the next 100 years, we’ve got to support the people and the supply chain.”

Claimed as a world first, it has introduced lighter weight technology which it says allows customers to wear knitted products year round.

Last year the company committed £4.5 million, an 800 per cent increase from 2012, to introducing its new technology and R&D capabilities.

Owned by the Johnstons for the first four generations and then the Harrison family since 1920, it last year booked £9.9m, profit before tax, a 59% increase year-on-year.

The firm employs 1,000 over its Hawick and Elgin mills, and is responsible for one third of Scotland’s textile apprentices.

It again looks to the future by running school visits, with 2,500 children seeing the mills each year. “They’ll do tours, but they’ll also do face to face interviews with young people in the company. They’ll do hands-on projects as well. So really, it’s trying to engage with the next generation and let them see that textiles is a vibrant industry with a good future, which has not always been how it’s been portrayed.

“Obviously the industry as a whole has gone through some decline for a period of time, but there’s now definitely a resurgence as people get much more interested in things like authenticity and how things are made, who’s making the products, and things like that.”

The company says it has the most advanced weaving looms and knitting machines in the UK.

Mr Cotton said: “We’ve invested a lot in finer gauges for the weaving and the knitting. That’s to give us a more international appeal, more year-round appeal, and broaden our products, so it means that we can remain relevant to the private label customers regardless of what their fashion cycle does. But it also means that from our own brand, we can give a much wider range of products.

“The technology and investment in machinery certainly is part of it. Take, for example, the fine gauge knitwear, which we’ve developed, so a really fine knit where you can wear it under a suit jacket. We developed that with whole garment technology, so basically very little sewing required. It’s a product which is made almost entirely on a single machine. We did that in collaboration with a very high end, very well respected yarn spinner in Italy, and the Japanese technology leader in the sector, Shima Seiki. You needed all three parties to do that. Just buying the machinery on its own was certainly never going to get us there.

“We’re in the process of launching our innovation centre in October in Hawick, where we’ll have all our design team, all the technical developers, all our programmers together under one roof. The magic happens when you’ve got designers and technical people working together, and then you can do things which maybe can’t be done if you’re designing in one office and sending things down the modem to another office.”

He said so far Multrees Walk living up to expectations and some international shoppers are “engaged by the idea that there’s actually a Scottish luxury brand which can sit beside the Louis Vuittons and the Burberrys and the Max Maras very comfortably”.

Q&A

Q What countries have you most enjoyed travelling to, for business or leisure, and why?

A I have a particular fondness for Mongolia. Alongside two other companies, Johnstons was the original member of the Sustainable Fibre Alliance, which works with the nomadic herders in Mongolia to improve all aspects of the sustainability of cashmere production.

Q When you were a child, what was your ideal job? Why did it appeal?

A I don’t think I had a clear idea until I was in my mid-30s and realised I had the opportunity to lead a business.

Q What was your biggest break in business?

I joined Russell Europe Ltd as a marketing manager and, although incredibly hard at the time, I learnt very quickly as part of that process, and when we did achieve the turnaround it was extremely satisfying.

Q And your worst moment?

A For my first MD role in 2007 I took over a company that had never made a profit. I learned a lot about the value of “lean” in manufacturing and how to balance the need to fill factories with the need to stay profitable.

Q Who do you most admire and why?

A My wife runs a charity that brings to Scotland children from the areas of Belarus affected by the Chernobyl disaster. Somehow she manages to completely energise herself to work with the charity and can make some incredibly tough decisions when necessary.

Q What book are you reading, what music are you listening to?

A I am reading Alistair Gray’s new book The Game Changer and listening to a young local musician called Calum Jones – he has a fantastic future.

Q What was the last film you saw?

A My son Seth took me to see Spider-man: Into 
The Spider-Verse. I thoroughly enjoyed it.

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