Hytex's garment unit to start ops in 'dragon land'

05 Oct '06

1 min read

Integrated garment producer Hytex Integrated Bhd is planning to invest about RM100 million to open a factory in China which will begin its operations in November.

In this manner it is escalating its present production capacity by 42 percent to 1.7 million pieces of garments monthly from 1.2 million currently being produced at its factories in Malaysia and Cambodia.

Of the RM100 million investments, RM40 million is for the factory building, RM40 million for machinery and the balance for working capital.

The new factory in China would initially produce 500,000 pieces of garments per month.

The new factory will boost Hytex's original equipment manufacturing (OEM) business as well as facilitate its entry into China's apparel market.

The company will hire 2,000 workhers for its factory in China.

This expansion will strengthen its relationship with Nike as China is one of Nike's fastest growing markets.

The company will concentrate on original equipment manufacturer (OEM) for niche market products such as Nike and Puma instead of producing for the mass market.

Currently, 55 percent of Hytex's revenue comes from OEM brands such as Nike and Puma and the remaining 45 percent from its retail business.

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