Apparel sourcing major Luen Thai expands boundaries

11 Apr '06

2 min read

Apparel supply chain services provider Luen Thai has responded to the reimposition of safeguards on Chinese apparel exports to the US.

In January, the company acquired production plant in Philippines as part of its expansion plan to meet the rising demand for sportswear.

It bought the facility through Yuen Thai Industrial Co, in a (50:50) joint venture with Yue Yuen Industrial (Holdings) Ltd.

Philippines plant is set up in tax free export processing zone in Cebu and its operations started last week.

This facility would be mainly used to supply Adidas and would become one of the largest suppliers to Adidas in near future.

Many companies have transferred their production facilities to countries like China and Vietnam for lower operating expenses, but Raymond Tan, President of the Yuen Thai Industrial Co Ltd is of the view that the local Filipino workforce is highly productive and for that he is ready to pay for their services.

Company has also acquired a 50 percent stake in apparel design and trading company, On Time International based in Hong Kong.

This acquisition will provide the European market access and serve its expansion purpose also.

More than manufacturing, Luen Thai offers apparel supply chain services from design-to-store.

Company satisfies the needs of customers in the areas of design, product development, materials management, production and delivery of finished goods to store levels.