Thu, Nov 30, 2017 - Page 12 News List

WW scales down reliance on China to expand south

By Kuo Chia-erh  /  Staff reporter

WW Holding Inc (威宏控股), which manufactures sports accessories and luxury bags, yesterday outlined its three-year project to expand business in Southeast Asia to reduce its reliance on the Chinese market.

While its production is mainly based in Dongguan, China, WW plans to boost its capacity in Thailand, Vietnam and Cambodia through acquisitions and by building more production lines, company officials said at a media gathering in Taipei.

LABOR COSTS

“We hope to lower revenue contribution of the Chinese market to nearly 50 percent by 2020 [from a level of more than 90 percent]” due to soaring labor costs in China, company chairman Kent Hong (洪永裕) said.

The company’s 13 production lines in Cambodia began trial operations in the first half of this year.

Officials said the firm would add 10 more lines to the Cambodian plant next year to replace some of its production in China, but did not elaborate on the exact capacity.

ACQUISITION

WW is to fully acquire TWT Manufacturing Co Ltd in Thailand for about NT$545 million (US$18.17 million) to enhance its competitiveness in the luxury luggage sector, it said in a filing with the Taiwan Stock Exchange.

The deal is expected to be completed by the end of this year, a WW official said, adding that TWT, a key supplier to US luxury bag maker Tumi Holdings Inc, generates revenue of nearly US$33 million per year.

WW posted cumulative revenue of NT$4.01 billion for the first 10 months of this year, representing a 3.69 percent annual decrease from NT$4.16 billion during the same period last year.

It attributed the decline in sales to the New Taiwan dollar’s appreciation against the Chinese yuan.

WW shares yesterday rose 2.64 percent to close at NT$74 in Taipei trading. Its stock has risen by more than 50 percent since the beginning of this year.

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