Tainan Enterprises Expand Operations to Fill Orders from New Clients

With additional orders from new clients, Tainan Enterprises Co., a major garment maker in Taiwan, is expanding operations in Southeast Asia.

Last year Tainan Enterprises started to receive orders from a new Canadian client, Reitmans,  and has landed orders this year from H&M, a new European client, which has motivated the company to establish a plant in Cambodia with  20 production lines. The plant will become operational in September 2014 with monthly output estimated at 200,000 pieces of garments.

The company's operations in Cambodia roll out 700,000-800,000 pieces of garments  monthly, which will rise to some one million once the new plant starts up to add 200,000 pieces.

Tainan Enterprises also has 70 production lines in Indonesia, of which 40 were newly added  that started up in June, which will raise the company's monthly output there to some 1.4 million pieces by the end of this year.

The company has two garment plants in China, one in Jiangsu Province and the other in Henan Province, which together roll out 600,000-700,000 garments monthly.

Although the company's combined revenues posted a slight annual drop of 2.6% to reach NT$2.713 billion (US$90.43 million) in Q1,  the percentage was expected to turn  positive 5%-10% due to orders from new clients. Currently its major clients include GAP, Ann Taylor, and TSAM. (JL)