Onward eyes cheap labour for knitwear unit

19 Jul '06
1 min read

With a view to taking advantage of 40 percent cheap labour cost in Vietnam, Onward Kashiyama, one of Japan's largest knitwear and apparel producers, is to set up a unit in Ho Chi Minh city signalling its declining interest in China.

It has already moved part of the knitwear production back home with an investment in Shima Seiki 'WholeGarment' technology that allows sweaters to be made in one piece reducing labour cost.

Onward will make investment of ¥200 million (US $1.7 million) in the unit covering an area of 4,600 square meters in collaboration with an apparel firm increasing its production capacity by 56 percent in Vietnam.

The unit, which is expected to produce 2,50,000 items a year under its brand Kumikyoku and under different women's brands, will be set up in Tan Thuan export processing zone of Ho Chi Minh City.

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