Texhong Textile to build textile industry chain platform in Vietnam
Texhong Textile Group a Hongkong based company and one of the world’s largest core spun yarn suppliers, as part of its expansion plan to develop a textile industrial chain platform in Vietnam.
The company has also entered into an agreement with Wah Fung Group, under which the company will invest in the latter. Besides, the two companies will also jointly develop a knitting and dyeing business in Vietnam — a crucial step for Texhong on its path to build a textile industry chain platform.
Besides, it has also acquired part of a jeans wear manufacturing group’s workforce as well equipment in China and Cambodia. This too will help the company in the form of invaluable experience for setting up the jeans wear business in Vietnam.
During Review Year ended December 31, 2015, Texhong Textiles total sales volume increased by approximately 10.5 % to 477000 tonnes, reaching a record high as compared with the same period last year, and revenue amounted to RMB 10.57 billion.
Texhong Textile has acquired the yarn spinning business, along with all of its yarn spinning-related technologies and patents of Central Textiles (Hong Kong) Group, a decision that hurtled the company’s business even further.
Continuing on its expansion strategy, Texhong Textile is set to increase its production capacity through self-development, and mergers and acquisitions. As per company records, it had a total of approximately 2.20 million spindles and 572 looms at the end of its review period. But with its two yarn projects in Vietnam Galaxy and China Xinjiang expected to begin in the second and third quarters of this year respectively, its spindle capacity will further increase by approximately 28 per cent to 2.81 million spindles — 1.57 million spindles in China and 1.24 million spindles in Vietnam.
The company is expected to begin its second phase of construction of a grey fabric factory, a dyeing factory and a garment factory of the Vietnam Galaxy project in 2016.
Riding on the recently signed Trans Pacific Partnership (TPP) agreement, of which Vietnam is a member country, Texhong is determined to make the most of it.