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Luen Thai to take advantage of 'Save Our Industries' act
Oct '10
Luen Thai Holdings, Philippine's largest garment exporter, recently revealed its large scale expansion plans for manufacturing of fresh coach bags, and for development of its production facilities at Cebu and Clark to meet rising demand for branded apparel in the country.

Lucito P. Reyes, Executive Director of the Board of Investments passed on the above information while in a meeting with CEO of Luen Thai, Willie Tan, and added that, the expansion is seen to generate 6,500 new jobs in the country.

Reyes also stated that, the Memorandum of Understanding to implement this expansion was signed in presence of President Benigno S. Aquino III, during his recent visit to U.S.

He further stated that, the company intends to utilize its own facility in Concepcion, Tarlac, for manufacturing new Coach bags, and would introduce a new commercial channel for the project, which is seen to go operational in mid of 2011, generating around 2,000 to 2,500 jobs.

Before exporting it to US, the coach bags will be sent to China. The company has large manufacturing facilities in China where it manufactures signature Coach bags.

Luen, apart from starting production of new Coach bags in Concepcion, Tarlac, is also planning to develop its production facilities in Clark, where it manufactures Ralph Lauren shirts, jackets and shorts.

Through expansion of this facility, the company plans to enhance denim production and provide support to other processes like dyeing and washing. For the purpose, the company would be required to import best quality fabric from US.

Luen is undertaking this expansion in view of the impeding clearance of the “Save Our Industries Act” bill, which clears the way for exporting Philippines garments to the US duty-free, produced from US manufactured fabric, yarn and fibres.

Luen's Tarlac based garment factory has a capacity to churn out 90 million cotton tops per year. Also, it exports no less than 90 percent of its total production to US. By and large, the company has invested P265 million in Clark.

Fibre2fashion News Desk - India

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