After the epidemic, Chinese textile companies continue to accelerate their investment in Southeast Asia!
More than half of the overseas 110,000 tons production capacity has been put into operation
This textile leader has invested more than 300 million yuan in its Vietnam factory
On July 11, polyester industry giant Hailide announced that the company plans to increase capital by US$50 million to its wholly-owned subsidiary Hailide (Hong Kong) Investment Holdings Co., Ltd. through the company’s own funds, and then Hong Kong Holdings will invest in its wholly-owned subsidiary Hailide (Hong Kong) Fiber Investment Co., Ltd. will increase capital, and will eventually increase capital to the company’s great-grandson company Hailide (Vietnam) Co., Ltd. The company will invest the capital increase one after another according to the progress of business development needs. After the capital increase is completed, Hailide Vietnam’s registered capital will increase from US$80 million to US$130 million. Hailide Vietnam’s business scope is: production and sales of polyester industrial filament.
According to the announcement, in May 2018, Hailide invested US$155 million in a project with an annual output of 110,000 tons of differentiated polyester industrial filament (Phase I) in Vietnam. Hailide acquired 33 hectares of new land in Fudong Industrial Park, Xining Province. Newly built spinning workshops, warehouses and other buildings with a construction area of 107,706 square meters, purchased production equipment such as solid-state polymerization equipment, differentiated polyester industrial filament production lines, as well as spinning and other supporting equipment, automated finished product three-dimensional warehouses and water Processing, power transformation and distribution, refrigeration, heating and other public engineering equipment, forming a construction scale with an annual output of 110,000 tons of differentiated polyester industrial filament.
It is reported that this capital increase will help enhance Vietnam Hailide’s financial strength, optimize its asset and liability structure, help improve its own operating capabilities, and help promote its better development of overseas business.
Strong orders: OEM for international brands such as Nike
This textile company accelerates the expansion of production capacity in Vietnam and Myanmar
It is reported that Huali Group, a well-known shoe factory, said in a recent survey that the industry still maintains a high degree of prosperity, and customer order demand and order forecasts are still strong. The company’s factories in northern Vietnam are operating normally, and each factory is making every effort to ensure the delivery of orders. The current production capacity for 2022 is also fully scheduled.
In order to ensure the smooth delivery of orders, Huali Group has actively expanded its production capacity. According to Huali, the production capacity of the three new factories put into operation in Vietnam in 2021 has been relatively smooth. It is expected that these factories will make a relatively large contribution to production capacity in 2022. At the same time, the company will continue to build new factories in Vietnam. The Indonesian factory is currently under construction as planned, and the first phase of the Indonesian factory is expected to start contributing production capacity next year. Due to the political changes in Myanmar and the impact of the epidemic, the investment plan of the Myanmar factory has been slow, but construction has now resumed.
According to public information, Huali Group was founded in the 1990s. After decades of intensive industry development, it has become the world’s leading manufacturer of sports shoes. Its market share ranks among the top three in the world. The companies include Nike, Converse, Vans, Puma, and UGG. , Columbia, Under Armor, HOKA ONE ONE and other world-renowned sports brands provide development, design and manufacturing services. It is the largest supplier of Converse, Columbia and UGG. The company’s management headquarters and development and design center are located in Zhongshan, Guangdong. Its manufacturing plants are located in Vietnam, Dominica and Myanmar, and its trade centers are located in Hong Kong, Zhongshan and Taiwan. The company has more than 100,000 employees and produces more than 180 million pairs of shoes annually. It is the main manufacturer and strategic partner of many well-known sports shoe brands in the world.
As of the end of 2021, Huali Group has a total of 151,198 employees and has opened more than 20 textile factories in Vietnam, Dominica and other places. In 2021, it will produce 210 million pairs of shoes annually, achieving revenue of 17.47 billion yuan, a year-on-year increase of 25.4%, and net profit 2.768 billion yuan, a year-on-year increase of 47.34%.
Jiangsu Cathay Pacific:
Invest 2.148 billion yuan to build textile industry bases in Vietnam and Myanmar
Jiangsu Cathay International Group Co., Ltd. publicly responded to investors’ questions on June 22 and stated that the company’s Vietnam textile dyeing and finishing construction project and data center construction project are actively advancing, Zhangjiagang yarn R&D and intelligent manufacturing project and Myanmar textile industry base construction project Currently in early preparation.
Jiangsu Cathay said that one of the company’s current main businesses is supply chain services, which takes the supply chain as the core carrier, bases itself on domestic and foreign markets, and continuously improves and improves services. The company’s organizational management covers the entire industrial chain such as design, proofing, production, storage and transportation, and pursues the overall competitiveness and profitability of the supply chain. At present, the company has completed the construction of the first phase of the garment industry base project in Myanmar, Cambodia and other places, and the second phase of the garment industry base is under construction. As business volume continues to increase, the company’s demand for clothing raw materials is increasing. Since the company currently purchases all the raw materials needed to produce and process clothing overseas, the supply of raw materials cannot be fully guaranteed.� It is also not conducive to reducing raw material procurement costs. Therefore, the company closely follows the previous garment industry base project and plans to use the raised funds to build this Myanmar textile industry base project and Vietnam textile dyeing and finishing construction project, extend to the upstream of the garment industry chain, improve the company’s industrial chain layout, and reduce the cost of raw materials through scale advantages costs, participate in the international division of labor, and balance trade risks. In summary, the construction of this project is conducive to improving the company’s supporting industry chain, cultivating new growth points for the company’s apparel business, and achieving sustainable and rapid growth in the apparel business.
Jiangsu Cathay stated that the company adheres to its main business of import and export, actively improves the level of supply bases, accelerates the implementation of overseas layout strategies, seizes development opportunities such as the “Belt and Road” and RCEP agreements, and operates in Myanmar, Vietnam, Cambodia, Egypt and other countries. The construction of supply bases at key nodes of the “Belt and Road Initiative” promotes the company’s transformation from “China supply chain integration” to “world supply chain integration”. In the next step, the company will continue to focus on Southeast Asia and further expand the construction of overseas production bases.
Southeast Asia has always been a popular target market for Chinese companies going overseas. From large manufacturers to small and medium-sized manufacturers, companies of different sizes choose to start here to expand globally.
Some investment institutions predict that the fundamentals of Southeast Asia are on a cyclical upward trend, which will continue for 10 years in the future. The structural factors that have underpinned the growth of Southeast Asian economies over the past five or 10 years remain in place, including socioeconomic factors such as middle-class growth, rising per capita income, and accelerated urbanization. In the long term, these structural factors will continue to support growth and investment activity in the Southeast Asian market.
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