As per the memorandum of understanding signed by the two companies, Lealea will spend up to $50 million to acquire PT Taoko's textile production facilities in Bandung, the third largest city in Indonesia.
PT Taroko is a joint venture between Taipei-based Taroko Textile Co and Nan Ya Plastics Corp, one of the main subsidiaries of the Formosa Plastics Group. While Taroko Textile wants to diversify its interests beyond the textile sector, Nan Ya does not want to continue its investment, Taiwanese media reports said.
Taipei-based Lealea will upgrade the 50-hectare production site in Bandung before launching its operations there. Initially, Lealea plans to start fabric dyeing and finishing business at the plant, before expanding to yarn making.
One of the reasons for Lealea deciding to invest in Indonesia is that the Southeast Asian country enjoys duty-free status for its exports to Japan and South Korea. Hence, nearly half of the production at the new plant is likely to be exported, with most of them to these two countries.
Strong demand for textile products in the Indonesian market is also a reason behind the Taipei based company deciding to invest in Indonesia.
Meanwhile, Lealea Group, the parent company of Lealea Enterprise, is planning to open warehousing facilities in the US later this year under another subsidiary Li Peng Enterprise Company. The warehouse will store about 2,000 tonnes of nylon and polyester chips produced in Taiwan and Southeast Asia. (RKS)
Fibre2Fashion News Desk – India
Indian fashion market is growing at a staggering rate
Transparent supply chain and fair trade will boost sustainable market
We have broad range of options in durable fabrics
Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...
Surat-based Sunrise Imports & Exports Co is a manufacturer and...
Reckon Industries adapts latest systems for manufacturing from designing...
German company Dilo Group is one of the leading equipment suppliers of...
S Ziya Gumuser
Turkish nonwoven manufacturer Teknomelt has been around for only seven...
Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...
From its modest beginning in the late 1960s, Shrujan has grown into a...
A Humming Way
A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...
The hype around 'designer jeans' was created by him. And the new wave of...