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Luen Thai defers setting up of new facility
19
Jan '11
Owing to the US Congress's failure to pass a preference scheme prior to the conclusion of its term in December 2010, Luen Thai Holdings Ltd, a garment producer has deferred the plan to set up a five million dollar denim facility in Philippines.

Rick Helfenbein, Luen Thai's US based subsidiary TellaS Ltd's President, in a recent press statement said that, they require the Save Our Industries bill, to set up the factory.

If the proposed law was passed, the garments produced in Philippines using US textiles would have become eligible to gain duty-free access in the US markets. The bill was placed before the US House and Senate long back but has yet not been passed till the convening of the new Congress towards the beginning of this month.

Helfenbein revealed that, the new facility would have engaged 2,000 workers to manufacture 150,000 pair of jeans per week.

The official said that, it is of no use to set up the facility, till the proposed bill is passed.

Meanwhile, the Philippine Undersecretary Cristino L. Panlilio said that, the trade department is once again preparing to press its case for the passage of the bill which has been reintroduced before the new Congress.

Fibre2fashion News Desk - India

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