Textile group Russian Textile Alliance plans to invest US$4 million in a cotton by-product processing plant, the company's president Konstantin Volkov said on Thursday.

Construction of the plant, to be located in Russia's Ivanovo Region, is expected to begin by July.

Its output is projected to reach 700 tonnes per month.

Russian Textile Alliance, which holds stakes in more than 24 textile producers in Russia, is 99.9 per cent controlled by the United Kingdom's Tex Development Plc.