The companies Industrias Nexus S.A. (Cuba) and Hangzhou Iunke Industrial Development Co., LTD (China) formalized the creation of the joint venture DuoNex S.A. this Monday, focused on the production and marketing of footwear, leather goods, saddlery, plastics, and textiles.
According to a statement from Industrias Nexus S.A., the aim of the new company is to develop lines of light industry products targeted for both the domestic market and export.
It also considers, the possible future incorporation of other significant productions from the same sector.
The incorporation ceremony took place at the headquarters of Tecnosime, with representatives from both sides participating, as reported by Prensa Latina.
On the Cuban side, it was signed by Marilyn Maqueira, General Director of Industrias Nexus S.A., while the businessman Huang Qiaoming, President of the Chinese firm Hangzhou Iunke Industrial Development Co., LTD, represented the foreign partner.
Officials from the Ministry of Industries, the Business Group of the Light Industry (GEMPIL), and representatives from the China-Latin America Industrial Commercialization Project (PICLA) were also present.
The constitution of DuoNex S.A. adds to other bilateral projects promoted in recent years between Cuba and China, in areas such as infrastructure, technology, and energy.
Both countries have maintained diplomatic relations for over six decades, with trade exchanges increasing in the context of the Cuban economic crisis.
Although the statement does not provide details about investment amounts or the timelines for starting operations, the joint venture fits into the strategy of the Cuban government to promote partnerships with foreign capital to boost underperforming productive sectors.
Another joint venture with Brazil
The announcement of DuoNex coincided with the recent establishment of Bioamazonas Alimentos y Otros Bienes de Consumo S.A., a new joint venture between the Cuban company Mercalhabana and the Brazilian Bioamazonas Industria e Comercio de Medicamentos Fitoterápicos.
This company will primarily aim for the wholesale and retail marketing of food and non-food products, as well as raw materials and logistics services.
In that case, according to the document signed by Víctor Marino Sánchez López (Mercalhabana) and Luiz Amadeu Teixeira (Bioamazonas), the initiative aims to supply the domestic market and generate exports.
Associated risks
These partnerships occur in a context of prolonged economic contraction in Cuba.
Despite these announcements, the Cuban government's history of relations with some foreign investors has been marked by payment delays, lack of liquidity, and operational obstacles.
Several foreign companies have reported difficulties in repatriating profits or recovering investments, which has created uncertainty in the business environment. These factors could pose challenges for the effective execution of new joint ventures, in an internal financial context marked by deficits and a lack of foreign currency.
The government has responded by promoting projects with foreign investment in an attempt to recover productive capacities and diversify the supply of essential goods.
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