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Tainan Enterprise hopes 20% rise in 2014 revenue
Jan '14
Taiwan-based garment manufacturer Tainan Enterprise Co. is expecting its revenue to rise by 20 percent in 2014 owing to its two factories becoming operational in June last year, Taipei Times reported.
The two apparel manufacturing factories in Indonesia have 40 production lines, which have increased the company’s total number of production lines in Indonesia to 110, said Cathy Yang, president and chief executive officer of Tainan Enterprise.
Tainan is expecting its annual capacity in Indonesia to increase to 1.4 million clothing items by 2014-end from the present capacity of 1.1 million apparel pieces, Yang said.
Besides Indonesia, Tainan has garment factories in China’s Jiangsu and Henan provinces, which produce 600,000 and 700,000 pieces a year, respectively.
The company also has factories in Cambodia which produce about 700,000 apparel pieces per annum.
However, Tainan Enterprise is not keen on building garment manufacturing units in Vietnam, due to the difficulty in finding the right kind of fabric in Vietnam, as Tainan focuses on making apparel with complicated designs that need the special fabrics that are still made in China, according to Yang.
In the first eleven months of 2013, Tainan’s revenue decreased by 14.09 percent year-on-year to NT$ 8.6 billion (US$ 287.21 million), which the company attributed to shutdown of one of its factories in Cambodia due to strike.
However, the company’s net profit in the first three quarters of 2013 increased to NT$196.88 million from NT$89.88 million registered during the corresponding period of 2012. The rise in net profit was due to the adoption of new technologies for making wider range of fabrics that lifted the average selling price by about 10 percent from a year earlier period.

Fibre2fashion News Desk - India

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