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Taiwanese apparel producers on overseas expansion spree
25
Nov '10
Eclat Textile Co., Makalot Industrial Co., and Tainan Enterprises Co., the three leading garment firms from Taiwan - are aggressively expanding their overseas operations, in view of the market uptrend.

Éclat, which is eyeing to grab orders from two to three new American and European companies in 2011, has decided to invest US $2.4 million for acquiring a garment unit in Vietnam with a capacity to churn 3-3.5 million units of knit garments and t-shirts, each year.

The firm is also planning to spend other four million USD towards setting up a new facility in Vietnam with an annual production capacity of 2.5 million garments. The firm intends to complete the work of setting up this facility by April 2011.

Makalot too is to invest $6.09 million for expansion of its capacity in Vietnam, and $2.47 million for expansion in Indonesia. Presently, the company is involved in construction of the second, of the two plants it is setting up in Vietnam, each of them having 18 production lines. The first phase of construction work is seen to conclude by March 2011, thereafter the facility would produce around 80,000 to 100,000 dozens garments during remaining part of the year.

Besides this, Makalot even intends to establish two more factories in Indonesia – one with 12 production lines and the other with 16 lines, each of which will have an annual production capacity of 180,000 dozens and 200,000 dozens garments, respectively.

Indonesia is the company's biggest production base, while China takes second position. But, with a view to cut down on the production cost, Makalot is slowly withdrawing from China and expanding its capacity in Vietnam and Indonesia by setting up more production lines there. In spite of this, the production of the company's China based facility accounted for 23 percent of its overall production, this year, which is expected to decline to 11 percent, next year.

Moving ahead, Tainan Enterprises too intends to spend five million USD for expansion of its capacity in China. The first stage of this expansion project which involves setting up of 20 new production lines would conclude by March 2011 and would involve a cost around three million USD, while the second phase would further add 20 more production lines and is expected to conclude in 2012.

Fibre2fashion News Desk - India

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