Garment and fabric supplier Eclat Textile Co (儒鴻) said it is to invest US$170 million in Indonesia, a move expected to expand the manufacturer’s global presence and boost production capacity.
At a meeting on Tuesday, its board approved a proposal for Eclat to pour the funds into Indonesia in three stages starting next month, the company said, adding that the investment aims to roll out products for ASEAN and the Chinese markets.
The first stage of investment would be completed by the end of next year to build a garment factory to produce 1 million units per month, Eclat said.
The second stage, to start in 2021, is to build another garment plant, also with a monthly capacity of 1 million units, it said.
The third stage will involve building a weaving mill with a monthly capacity of 1 million kilograms, the company said.
Construction of the weaving mill is to start in two years and before work starts, the company will map out details about the investment through possible suppliers with the aim of setting up a comprehensive supply chain, Eclat said.
It is in talks with authorities of an industrial park as a possible destination for the investment, but Eclat did not disclose the name of the park.
The firm has overseas production sites in Vietnam, Cambodia and Lesotho.
The investment in Indonesia is expected to help it diversify risk, it said.
Several other major textile manufacturers, such as Makalot Industrial Co (聚陽) and Lealea Group (力麗集團), run production sites in Indonesia.
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