Leading curtain manufacturer and seller Nien Made Enterprise Co (億豐綜合工業) yesterday said it would divert most orders for ready-made products from China to Cambodia to avoid US tariff risks.
“The US-China trade dispute hastened our expansion in Southeast Asia,” a public relations officer told the Taipei Times by telephone.
The company has been increasing output at its Cambodia plant to cope with a labor shortage in China, the officer said on condition of anonymity.
About one-third of the company’s ready-made products, such as blinds, are made in China, but it plans to move the bulk to Cambodia in stages over the next few years once its clients agree, he said.
“We will not stop hiring people at our Chinese plants, which have about 6,500 workers and are running at full capacity, in line with our efforts to increase shipments of customized and high value-added products,” the officer said.
Nien Made spent US$22.83 million to purchase a 285,416m2 plot south of Yangon, Myanmar, in May and expects to start operations in 2021 at the earliest, he said.
In addition to diversifying production bases, the company plans to adjust prices for custom-made products to stay competitive and ease operating pressure, he said.
The company’s net income climbed 22.8 percent annually to a record NT$1.94 billion (US$61.86 million) in the first half of the year, while earnings per share improved from NT$5.4 to NT$6.63, thanks to steady orders for ready-made and custom-made products, it said.
Gross margin increased 4.8 percentage points to 49 percent, while revenue rose 11 percent year-on-year to a record NT$11.37 billion, it said.
FLOORING
Separately, flooring supplier M.J. International Co (美喆) on Thursday reported that net income for last quarter surged 68.04 percent year-on-year to NT$128.15 million, or earnings per share of NT$1.94, backed by robust demand for high-margin luxury vinyl tile flooring with hexagonal patterns and stone plastic composite (SPC) flooring.
Gross margin climbed 7 percentage points to 26 percent last quarter, while revenue jumped 36.32 percent year-on-year to NT$939.3 million, the company said in a press release.
New production lines at its plants in Dongguan City in China’s Guangdong Province are to start operations later this quarter at the earliest to meet growing demand for SPC floorings, it said.
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