TAIPEI, NNA – Taiwan’s major sportswear maker Eclat Textile Co. will invest around $170 million in building a textile and apparel plant in Indonesia to receive growing orders switched from China due to the lingering trade spat with the United States.
The move comes as the company aims to diversify production bases in order to avoid arising risks and to meet increasing demand. It plans to expand production in three phases in the Southeast Asian country, it said in a statement Tuesday.
The establishment of the plant will add 2 million garment items and 3 to 3.5 million yards of fabric per month, boosting the apparel manufacturer’s global output capacity by about 20 percent, local media reported.
The initial phase of the production is scheduled to begin in 2021. Eclat currently operates a total of 17 sewing factories in Vietnam and Cambodia and produces about 10 million garment items monthly, according to the reports.
Eclat, which supplies clothing to athletic wear brands such as Nike, Lululemon, and Under Armour, produces fabric in Taiwan and Vietnam.
The Taiwanese firm has picked Indonesia because it is the world’s fourth most populous nation and has favorable investment conditions such as an abundant workforce. Vietnam, on the other hand, faces rising land leasing costs, a manpower shortage and surging labor costs because the country has increasingly become a destination for production relocation from China in the trade war, the reports said.