Chinese garment makers relocating to Philippines

25 May '11

2 min read

Owing to rising cost in China and in expectation of the passage of the proposed 'Save Our Industries Act' which is aimed at earning duty-free or preferential access in the US for Philippine garments made using textiles and fabrics imported from the US, two leading garment producers in China, who manufacture for leading global brands, have started shifting some of their operations to Philippines.

According to Fe Agoncillo-Reyes, Executive Director of Philippines' Board of Investment (BOI), the relocating firms are the subsidiaries of Japanese firms Zepher and Suzhou Tianyuan Garments Co. Ltd. and both have sizeable manufacturing operations in China's Shanghai.

Reyes revealed that the two firms had complained about the rising cost of doing business in China, besides they are also looking ahead to the passage of Save Act and even some of their buyers also are in favour of sourcing from Philippines. He added that the interest shown by the two companies has given hope of a promising future to the garment sub-contracting firms in the Philippines.

Zepher is a producer of high-end fashion clothing like, fine knit women's garments, for sale in the Japanese market.

Reyes stated that the firm has confirmed that they are shifting a part of their operations to Philippines and to start with, would shift production of some clothing lines in an economic zone, with a primary investment of two million dollars.

The other firm, Suzhou, too may make a primary investment of two million dollars to partially relocate its production in Clark or in an economic zone in Cavite in Philippines, employing at least 500 workers.

Suzhou started the textile and garment producing business in 1958 and has seven fully-owned subsidiaries and three professional training schools as of today. In its Shanghai factory itself, it employs 2,000 workers.

Oregon-based Columbus Sports is the firm's leading buyer in the US. Besides, the firm even supplies sportswear to Reebok and Adidas, also in the US.

Reyes further stated that, Suzhou is already moving ahead to register its project, which may become operational within the next two months.

During the economic managers' Private Public Partnership road show in China, Trade and Industry
Secretary, Gregory L. Domingo met the Suzhou officials and assured them of smooth establishment of its factory in Philippines.

Fibre2fashion News Desk - India

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