Textile and garment manufacturer Eclat Textile Co (儒鴻) yesterday said it expects sales this quarter to grow annually and that its performance in the second half of the year would outperform the first half, driven by rising orders from major customers.
“Sales from Nike have contributed between 13 and 15 percent of our total sales so far this year, which might grow annually this year and next,” chief financial officer and vice president Roger Lo (羅仁傑) said on the sidelines of the Taipei Innovative Textile Application Show in Taipei.
As global brands such as Nike, Under Armour and Adidas continue to reduce the number of suppliers to lower labor and management costs, Eclat is likely to gain more orders and a higher market share, the company said.
The company has also benefited from diverted orders amid the US-China trade dispute, as evidenced by the rising output from its Vietnamese and Cambodian plants, it said.
Aside from clear order visibility through June next year, Eclat is expected to add three to five new clients next year, it said, adding that sales growth should accelerate next year.
Eclat last month said it would invest US$170 million to set up a production base in Indonesia.
The plant is expected to produce 1 million pieces of apparel in the first quarter of 2021, Lo said yesterday.
The new plant would produce 2.5 million to 3 million pieces of apparel and 1 million kilograms of woven materials per month in 2022, he added.
Ready-to-wear apparel and functional clothing manufacturer Makalot Industrial Co (聚陽實業) also expects sales to grow next year, although clients have become more conservative this quarter, chairman Frank Chou (周理平) said yesterday.
“The market might be tricky next year, as clients, especially from the US, have been slow in placing orders ahead of the results of trade negotiations between the US and China,” Chou said.
Makalot still expects sales in the first half of next year to grow after adding four to six new clients and the launch of new athleisure clothing, Chou said.
The company’s total capacity is expected to increase by 10 percent following the completion of two new plants in Indonesia next year, it said.
In Vietnam, the company has adjusted its manufacturing capacity after a fire affected two of its plants in Hai Duong Province in July, with the overall utilization rate in Vietnam recovering to between 85 and 90 percent last month, it said.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees