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Eclat finds new outsourcing units, to hike capacity by 15%

19
Nov '19
Pic: Shutterstock
Pic: Shutterstock
To address a lack of capacity and labour in Vietnam this year, Taiwan’s Eclat Textile Co has found new outsourcing factories and is likely to ramp up its own capacity by 15 per cent next year. The firm is expected to face a capacity shortfall of 1.8-2.2 million pieces per month next year against rising orders from its major brand clients, analysts say.

As a result, the company plans to raise its monthly garment output to more than 10 million pieces next year, from an estimated 8.5-8.8 million pieces this year, a Taiwanese media report said quoting analysts who attended the company’s earnings conference recently.

Eclat plans to lift its capacity utilization rate from 80 per cent to 95 per cent at factories in southern Vietnam, which should generate an additional 800,000 pieces per month, they said.

Eclat told analysts that it has secured outsourcing factories in southern Vietnam to add 24 production lines, which should boost monthly garment capacity by 400,000 to 450,000 pieces for this quarter and next quarter, while it is still searching for other outsourcing factories in northern Vietnam to add 10 to 20 new production lines per month.

Eclat has operations in Taiwan, Vietnam and Cambodia. The company counts Nike Inc, Adidas AG, Under Armour Inc and Lululemon Athletica Inc among its major clients.

Fibre2Fashion News Desk (DS)


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