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TSI slashes in-house China production
11
Feb '16
Japanese apparel major TSI Holdings has scaled down production at its own factories in China as it seeks to outsource more work to partner facilities in inland China and Southeast Asia, where labour is cheaper, the Nikkei Asian Review has reported.

TSI sold its jacket and dress plant in Suzhou, Jiangsu province, to an unidentified buyer for an undisclosed sum. The cost of running the plant, which opened in 1994, had been rising due to urbanization of surrounding areas.

Another plant -- in Qidong, also in Jiangsu province -- will see its output reduced. Its utilization in the future is being evaluated.

TSI previously maintained product quality through in-house production, but over the years, the quality difference with outsourcing has been minimal.

TSI, which was formed in the 2011 with the merger of Tokyo Style and Sanei-International, has maintained production at Tokyo Style's facilities in Japan and abroad. With about 70 per cent of its output now occurring overseas, TSI needs to revamp production as foreign exchange rates and other factors push up costs, the report said. (SH)

Fibre2Fashion News Desk – India

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