Home / Knowledge / News / Textiles / Yuan fluctuation; don't worry, Hanesbrands
Yuan fluctuation; don't worry, Hanesbrands
24
Jun '10
Hanesbrands Inc. said that China's decision to allow fluctuation of the Renminbi/yuan currency value will not have a material effect on company performance and will not alter the company's global supply chain advantages, including its East Asia manufacturing hub.

Currency fluctuation is just one of many variables the company continually manages around the world, including commodity costs, labor inflation, trade laws, and product sourcing. Last week, China announced that it would reform its Renminbi exchange rate regime and increase exchange rate fluctuation flexibility.

Hanesbrands has little exposure to Renminbi currency fluctuation. For example, a 5 percent exchange rate change for the Renminbi would have just a $1 million to $1.5 million pretax effect on company costs in 2011 and even smaller effect in 2010.

Hanesbrands produces the majority of its products in its own manufacturing plants located primarily in three balanced geographic clusters: the Caribbean Basin, Central America and East Asia. The company's East Asia production – fabric production in China and garment sewing in Thailand and Vietnam – also gives Hanesbrands a low-cost supply to support its U.S. commercial business as well as its growing Asia commercial businesses, including in China.

Chinese currency fluctuation would have little impact on company products that are supported by its Nanjing, China, textile fabric plant, which uses U.S. yarn and sends fabric to be sewn in Vietnam and Thailand, limiting the labor and variable costs that could be affected by Chinese currency fluctuation.

“The competitiveness of our balanced global supply chain is a key pillar to our growth strategy,” said Gerald Evans, Hanesbrands president, international business and global supply chain. “Before deciding in which countries to locate our manufacturing operations in the Caribbean, Central America and Asia, we analyzed extensive long-term scenarios using multiple factors, including currency fluctuation, labor markets, political stability, and energy infrastructure, to name a few. We have one of strongest and most flexible supply chains in the apparel industry that supports our worldwide growth vision.”

While Chinese currency fluctuations are expected to have minimal effect on Hanesbrands' supply chain, other cost pressures are affecting apparel industry supply chains on a worldwide basis, including systemically higher cotton and energy costs and labor inflation. Hanesbrands supplements its production in company-owned plants with sourced goods from strategic vendors located in multiple countries in both hemispheres to assure cost competitiveness. Sourced goods and self-manufactured products from all countries have exposure to systemic cost inflation.

Hanesbrands attempts to mitigate and contain cost spikes through geographic diversity and efficiency initiatives. In light of the systemic cost inflation that is now occurring, Hanesbrands is working in partnership with its customers to implement the optimal mix of price increases and brand investments to allow the company and its customers to successfully navigate this higher cost environment.

Hanesbrands Inc

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X