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LMW's China subsidiary to expand operations
Apr '12
LMW Textile Machinery (Suzhou) Co. Ltd., a wholly-owned subsidiary of Lakshmi Machine Works (LMW), a leading textile machinery manufacturing firm based in Coimbatore, India, plans capacity expansion at its Wujiang plant.

The RMB 220 million company plans to expand the production capacity of its plant in the Wujiang Economic Development Zone in Jiangsu province of China from existing 35 machines per month to 40 machines per month.

In addition to this, it even looks at developing its own facility in the same zone and has already secured land from the Government for the same, Mr. K Soundhar Rajhan, Chairman, LMW Textile Machinery (Suzhou) Co. Ltd., said.

The cost of expansion and constructing the new facility would come to be slightly above US$ 6 million, almost half the budgeted outlay of US$ 12.5 million. The remaining sum would be invested in the two projects over the next two years.

There is great growth potential in China, as Chinese textile market is very big and majority of the producers modernize their machines over time, Mr. Rajhan said.

Although there is tough competition from European majors and the state-owned enterprises, LMW has efficiently managed to penetrate the Chinese market, he added.

Fibre2fashion News Desk - China

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