In an ongoing trend that has Chinese mill operators looking to lower production costs, many are relocating operations to less expensive labor markets, namely Vietnam.
More than 15 mills, including publicly traded mills Texhong Textile Group and Bros Eastern Co., have led the migration, citing labor and artificially high domestic cotton prices, according to a Reuters report.
Vietnam is the main destination for relocating mills, and Indonesia, South Korea and even the United States are benefiting from the moves as mechanization, competitive labor costs and tariff forgiveness help woo yarn makers from China.
Hangzhou-based Keer Group is poised to be the first Chinese yarn maker to move to the United States, according to Reuters. It is expected to break ground on a $218-million spinning factory in South Carolina in February.
In a related story, majority shareholders of Masood Textile Mills have agreed to sell 52% of its shares through a Share Purchase Agreement with a Chinese group and two other acquirers, according to a notice sent to the Karachi Stock Exchange (KSE) on Monday. Read the full story at Pakistan’s The Express Tribune.