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Makalot to install 100 more production lines by 2011
Aug '10
Taiwan-based Makalot Industrial Company, the world's leading garment manufacturer is likely to add another 100 production lines by end of 2011, as it proposes to enhance its yearly production to touch a new high of 12 million dozens of garments in 2012.

The company's production lines, for current year are completely booked till October end, while the total production for 2010, with an yearly growth of 25 percent is projected to touch 8.8-9.0 million dozen garments.

As divulged by L. P. Chou, Chairman Makalot, the company's earnings for 2010 are likely to rise by 10 percent to NT $15-15.5 billion, thus crossing the NT $15 billion mark for the very first time, whereas the pretax earnings per share (EPS), are anticipated to be above NT $8.

The company, with an intent to catch up with the increasing demand in world markets, aims to expand its production activities in Southeast Asia by setting up 40 additional production lines in Indonesia, 30 in Cambodia and 40-42 lines in Vietnam.

On an average if the annual output per production line is estimated to be 24,000 dozens, the company's overall production volume is expected to grow by 2.68 million dozens by end of 2011, as its proposed expansions projects conclude.

Currently, 30 percent of the company's total output comes from its production base in Indonesia and the base in China accounts for 22 percent of the same. For the past few years, wages in China have been rising at an average rate of 15-20 percent, which is very much above the average 10 percent rate in Southeast Asia. This is why the company intends to trim down its production share in China to 10 percent by 2012.

Fibre2fashion News Desk - India

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