As Vietnam has become the largest shoemaking base for Taiwanese companies, Baihe Industrial-KY (8404), a major shoemaking material manufacturer, will follow the footsteps of its customers and expand its factory layout in Vietnam!
Due to the strong operation of Paiho-KY’s Vietnamese warp-knitted jacquard mesh business, in order to expand its presence in Vietnam, Paiho-KY decided last month to use its subsidiary Hongxing to The company has increased its investment in Vietnam Baihong by US$35 million (approximately RMB 224 million) and plans to carry out a new factory building project in the Vietnam factory. It is currently planning to produce another new product to compete for the market.
In addition to the expansion of the factory in Vietnam, Zheng Guo’s second son, Chairman of Baihe-KY, and Zheng Xinlong, Vice President of the company’s business management center, were recently officially promoted to General Manager of Baihe-KY, and his subordinates Two important positions, including general manager of Vietnam Baihong, and Zheng Guo’s eldest son Zheng Chengjia, have already served as directors of the company, which seems to have started the second generation succession plan of the company.
Baihe-KY also announced the company’s new important cadres, including the new executive associate manager of the R&D Management Center, Shi Yiliang, executive associate manager of Vietnam Baihong Design Center; the new financial management center manager, By Zhang Yumin, accounting manager and spokesperson.
Original manufacturer for Adidas, Nike, UA, and NB, and purchased dozens of hectares of land in Vietnam to become the only one-stop warp knitting jacquard mesh factory in Vietnam.
Paiho Industrial-KY’s Vietnam Paihong factory
Paiho-KY’s Vietnam Paihong factory has been established in Binh Duong Province, Vietnam Mei Phu Industrial Zone purchased 25 hectares (1 hectare = 15 acres).
Among them, the first phase of Vietnam has a land area of 10 hectares, becoming the only one-stop warp knitted jacquard mesh factory in Vietnam. The main customer base is locked in customers, including Adidas, UA, and NB. , ASICS, Puma and Skechers and many other brand operators.
The legal person believes that Vietnam Baihong has the opportunity to break even between profits and losses in the first half of this year. When the peak season comes from September to December this year, it is expected to make a profit in a single month of operation.
Including Baocheng (9904), Fengtai (9910), Yuqi-KY (9802) and Zhiqiang-KY (6768) and other Vietnamese listed shoe companies factory, have become the largest shoemaking production base of the group.
According to Vietnam Customs statistics, Vietnam’s footwear exports in 2020 were approximately US$16.8 billion, closely following mainland China’s footwear exports of US$35.4 billion, and together with Indonesia, it ranked first in Asia. Three major shoemaking bases.
Paiho-KY decided last month to increase its investment in Vietnam Paihong Company by US$35 million through its subsidiary Hongxing Company, and will begin to expand its factory layout in Vietnam. Baihe-KY pointed out that the above-mentioned construction costs of the factory building, including civil construction and mechanical and electrical costs, are estimated to be approximately US$46.86 million (before tax). It intends to authorize the chairman of the company to make a decision within a limit of no more than 10% of the aforementioned amount. , handle relevant signing matters.
Paiho-KY, whose operating headquarters is located in Wuxi, mainland China, has actively promoted the establishment of a research and development center in the Shanghai National Convention and Exhibition Center area to strengthen development interaction with various brands, with a view to establishing a complete Develop a service system; in addition, the company will also set up an e-commerce marketing department in Shanghai in the future, which can cooperate with its production and service bases in Wuxi, Dongguan and Vietnam, with a view to completing various market marketing layouts. </p
