Major garment producers revamp global operations for profits

04 Jun '05

3 min read

The rising market competition seen after the cancellation of the Multi-Fiber Agreement on global textile quotas in early 2005 has prompted Taiwan's garment makers to strenuously adjust manufacturing structure and enhance operating efficiency.

Among the leading garment manufacturers on the island, Makalot Industrial Co., Tainan Enterprise Co., and Nan-Woei Industrial Co. have enjoyed better performances after successfully reshaping their global operations.

In order to streamline production facilities and lower manufacturing cost, Makalot has recently combined its two plants in El Salvador into one, thus significantly improving its production capacity utilization rate. The company indicated that streamlining operations in El Salvador was the first of its kind among its overseas footholds. Currently Makalot's operation in that country focuses on the production of knit-woven upper garments and cotton trousers, and the production capacity utilization rate is therefore boosted to 100 percent from 70 percent-80 percent in the past.

Apart from remodeling the plants in El Salvador, Makalot has also actively scaled down its operations in Taiwan, although the company's production volume in Taiwan has dropped to 2 percent of its global output.

Nevertheless, the company has so far received more than 70 percent of the expected orders for this year, and its shipment is estimated to reach 1.3 million dozens of garments in the second quarter of the year.

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