Fri, Dec 27, 2013 - Page 13 News List

Indonesian plants to boost Tainan Enterprise’s sales

By Camaron Kao  /  Staff reporter

Garment maker Tainan Enterprise Co (台南企業) said on Wednesday its revenue would rise 20 percent next year from this year after two factories in Indonesia became operational in June.

The two factories have 40 production lines, increasing the company’s total number of production lines in Indonesia to 110, Tainan Enterprise president and chief executive officer Cathy Yang (楊富琴) said.

The company expects its annual capacity in Indonesia to rise to 1.4 million apparels by the end of next year from 1.1 million at present, Yang said.

CAMBODIA FACTORIES

Tainan Enterprise also has factories in Cambodia which can turn out 700,000 garments a year, and in China’s Jiangsu and Henan provinces, which can manufacture 600,000 to 700,000 pieces a year, Yang said.

Mainly a supplier to the US market, the company counts global brands such as White House Black Market, Ann Taylor, Macy’s and Gap among its clients.

As both Canada and Japan offer tariff-free entry for Cambodian goods, the company started selling its products to Canadian brand Reitmans this quarter and plans to enter the Japanese market soon.

“Compared with the US apparel market, the Canadian market is less volatile,” Yang said.

Although many Taiwanese textile companies are planning to build factories in Vietnam, with an eye to the Southeast Asian nation joining the Trans-Pacific Partnership (TPP), Tainan Enterprise appears in no rush to follow suit.

That is because of the difficulty in acquiring the right fabric in Vietnam to make its garments, Yang said.

“We focus on making apparels with more complicated designs, and most of the fabrics we need are still made in China,” she said.

The company posted a revenue of NT$8.6 billion (US$287.21 million) in the first 11 months of the year, down 14.09 percent from NT$10.01 billion a year earlier. Yang attributed the decline to the shutdown of one of its three factories in Cambodia after a strike broke out.

NEW TECHNOLOGIES

Net profit in the first three quarters of the year reached NT$196.88 million, or NT$1.35 per share, up from NT$89.88 million, or NT$0.61 per share, a year ago, company data showed.

Yang attributed the improvement to the adoption of new technologies that enabled the company to make suits using a wider range of fabrics, thus lifting its average selling price by about 10 percent from last year

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