Taiwan's garment makers to enjoy 20% revenue growth in 2005

Jan 25, 2005 Ι Industry In-Focus Ι General Items Ι By Judy, CENS
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Taipei, Jan. 25, 2005 (CENS)--With unexpected orders from their clients in the United States, Taiwan's garment makers, including Makalot Industrial Co., Tainan Enterprise Co., and Roo Hsing Garment Co., have seen their production lines fully booked throughout the year, all expecting an annual revenue growth of over 20% for the year.

Since the cancellation of the Multi-Fiber Agreement on Global Textile Quotas beginning this year, the U.S. government has imposed restrictions on imports of some garment products from mainland China to forestall a possible dumping of China-made garments in the U.S. market. This has forced many garment importers in the U.S. to shifted orders to Taiwan, Cambodia, and Indonesia from the mainland.

A senior official at Tainan Enterprise states that the company earlier expected to lose some orders in the fourth quarter of last year and the first quarter of this year, traditionally hot seasons for woven clothes, due to the cancellation of the Multi-Fiber Agreement. However, it unexpectedly received orders shifted from the mainland by their clients in the U.S.

Tainan Enterprise's plant in the mainland used to receive orders from Japan, and since the beginning of this year it has received orders from the U.S., but mainly for shirts and blouses, which are not still free from the restrictions. To meet the growing orders, the firm has decided to boost the production capacity of its mainland plant. With foreseeable booming orders to be filled by its plants in both sides of the Taiwan Strait, the company is expected to see an annual growth of about 20% in revenue for the year.

Thanks to the flexibility of its global operations, Roo Hsing is estimated to see a 30% growth in orders for knitted woven products. To diversify its products to meet the customers' needs, the company has expanded its production capacity by setting up strategic alliance with its overseas contractors. And this is one of the main reasons why the firm can enjoy growing orders for the year.

Makalot has also kept expanding its overseas operations and diversifying its production lines this year. With the expansions, the company predicted to see its revenues break the NT$10 billion (US$294.12 million at US$1 = NT$34) mark this year, for an annual increase of 20% and witness its shipments post a sharp annual rise of 35%.
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