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Tainan Spinning combines yarn production lines to lower costs

22
Dec '08
Due to the global financial turmoil, Taiwan textile industry is experiencing a bitter chill. Tainan Spinning Company Ltd (1440) has recently announced that it will shutdown two of its production lines in Tainan Rende Spinning Factory in order to reduce production costs, and move the equipment to the yarn factory in Sinshih Township.

Deputy Director of Tainan Spinning Liao Meng Xing said that, with this the production capacity is estimated to reduce by more than 20 percent.

Rende Spinning Factory originally had four production lines, 2 lines have previously moved to Vietnam, now it has only 2 production lines. This time Tainan Spinning will move relatively new equipment of spinning lines to the yarn factory in Sinshih Township.

After the unification, the factory in Sinshih Township will expand its spindles from 123,712 to 150,720. Its current monthly yarn capacity is about 18,000 units, but will decline to 14,000 per month.

Liao pointed out that production lines of Rende Spinning Factory were incurring losses but this step will help the Company to be able to save a lot of production cost.

Net profit after tax of Tainan Spinning was only 3.5 billion TN yuan in the first three quarters, down about 74 percent year-on-year.

Tainan Spinning Co Ltd basically manufactures and sells various yarn and fibre in Taiwan. Its products include carded cotton yarns; combed cotton yarns; 100 percent cotton, T/C, CVC OE slub yarns; spun yarns; easy dry yarns; fila yarns; carded cotton slub yarns; combed cotton slub yarns; cotton/polyester slub yarns; cotton/polyester Siro yarns; fancy yarns; polyester staple fibers; and chips.

These products are used in various applications, including jeans, leisure garments, house decoration, and in various fabrics, as well as in industrial applications.

Fibre2fashion News Desk - China


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