Home / Knowledge / News / Apparel/Garments / Addchance's green plant for knitted sweaters well underway
Addchance's green plant for knitted sweaters well underway
17
Jul '12

Addchance Holdings Limited, a leading global textile manufacturer principally engaged in the production and sale of dyed yarn, knitted sweaters and cotton yarn; the provision of dyeing and knitting services; and the trading of cotton and yarns in Hong Kong, mainland China and Cambodia, announced that it has entered into an operation rights transfer agreement with an independent third party.

The Group has agreed to transfer the Operation Rights of its wholly owned PRC Subsidiary to the independent third party for an aggregate consideration of approximately HK$554 million. The PRC Subsidiary currently holds the land use rights of eight sites situated in Luoding City, Guangdong Province, China.

Upon the completion of the transaction, the Group will record a gain before tax of approximately HK$435 million. The proceeds will serve as working capital for the Group. The transaction will bring a positive financial gain, and will strengthen the Group's cash flow and financial position, put further focus and resources on the development of the Group's core business, and thus enhance the overall operating strength and profitability of the Group.

 The Group's Chairman Mr. Sung Kim Wa said, "The European debt crisis and slow recovery of the US economy, together with the fluctuation in raw material prices and the appreciation of the RMB, will continue to affect the operating environment and the landscape of the textile industry, which will remain challenging. However, we strive to maintain our cost advantages leveraging our stepped up efforts in improving operational efficiency and our supply chain management, as well as efforts to stabilize raw material costs. In addition, the Group will continue to focus on the production of mid-to-high end products, further expand domestic sales and the scale of production of sweaters, and enhance the sales contribution and market share of the China market."

The Group's environmentally friendly plant, which began construction in Cambodia last year, is being built in two phases to increase the Group's production capacity of knitted sweaters and to meet the growing demand from renowned European customers. The total investment cost of the environmentally friendly plant exceeds HK$100 million.

 The design of the newly-built plant aims to achieve energy efficiency and emissions reduction, and is the first environmentally friendly plant in Cambodia featuring the most advanced and comprehensive environmentally friendly production facilities, meeting the strict environmental protection standards and regulations of our European customers. The establishment of this green factory is well underway, and the Group expects to launch phase one to commence mass production in the second half of 2012. Upon the completion of the entire project, the overall annual production capacity of the Group's knitted sweaters will increase by 20%, which will further satisfy the demand from renowned European customers and enhance the Group's market share.


Must ReadView All

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search