The Indonesian Group of Nisshinbo Co., Ltd., including NIKAWA Textile Company, NISSHIBO Indonesian Weaving Processing Company, and NAIGAI Textile Sewing Processing Company, is expected to have consolidated sales revenue of 14 billion yen in fiscal 2014. Profits are expected to increase by 20%. This is the result of the proactive investment made in the early stage to increase production and save energy. In addition, sales of fabrics for uniforms and shirt fabrics to Europe and the United States have achieved steady growth. The production of shape-stable processing APOLLOCOT has also started in August, aiming to increase sales revenue by 10% and double profits in fiscal year 2015.
This year, electricity bills in Indonesia have increased by 40%, and labor costs have also increased. However, the company has continued to improve production efficiency through automation and increased production, and the results of these measures have been reflected in performance. NIKAWA Textile Company not only introduced double twisting machines to replace about 9,000 small worsted spinning machines, but also introduced automatic doffing machines. The weaving workshop also added 30 air-jet looms, bringing the total number of looms to 300. The number of employees was reduced by improving production efficiency, but there was a shortage of staff beyond expectations. This problem has been solved by increasing the number of employees, and sales revenue has also reached double-digit growth.
On the other hand, due to the increase in production due to the addition of resin processing machines, NISSHIBO Indonesian Weaving Processing Company’s sales revenue and profits both reached double-digit growth. From this year to next year, the company will move the dyeing and processing equipment of the Meihe factory to the local area, and also plans to add tenter and other equipment. It plans to increase the monthly output from 2.2 million yards to 3 million yards by 2016.
The rising production costs of textile auxiliaries and energy are still a problem, but it is expected that the equipment invested by the company in the next fiscal year will perform better than this fiscal year. At the same time, the company will also increase the sales business of processed fabrics. Currently, processed fabrics only account for 15% of the output of NISSHIBO Indonesian Weaving Processing Company, and it plans to increase it to about 30%. In addition, next-generation APOLLOCOT products using fine-count yarns are also under development, and sales of shirt fabrics for the European and American markets will be strengthened.
