After the clothing and weaving factories, Ruhong, after the overseas production bases such as Vietnam, Cambodia, and Lesso, the board of directors decided to set up garment and weaving factories in the 3 stage of Indonesia with $ 170 million. Ruhong said that the main purpose is to diversify risks and enter the ASEAN market in the future.
Ruhong announced on September 11, 2019 that it plans to invest US$170 million to add a weaving and garment factory in Indonesia. The investment plan is expected to be completed in three phases starting from October this year, mainly to diversify the concentration risks of the production base and expand the production scale to meet production capacity needs.
Ruhong did not disclose the industrial zone where the factory is located. He is mainly negotiating contract details with the industrial zone.
Ru Hong said that in this three-phase factory plan, the first phase will start building a garment factory in October and is expected to be completed by the end of next year, with a monthly production capacity of 1 million pieces; the second phase will still build a garment factory, which is expected to be completed by the end of next year. Construction will begin in 2021, with a monthly production capacity of 1 million pieces; a weaving factory will be built in the third phase, with an estimated monthly production capacity of 1 million kilograms.
Ru Hong also did not disclose which supplier the raw silk and processed silk required for weaving came from. He only revealed that the weaving factory will be built in two years. During this period, some plans can be discussed. , it is expected to establish a complete supply chain within 2 years.
Since Indonesia has not yet enjoyed tariff-free measures with the United States and the European Union, Ruhong said that the garments and fabrics produced by Indonesian factories can be sold to ASEAN and China, mainly to spread production risks.
At present, large Taiwanese textile companies such as Juyang and Libaolong Indonesia, a subsidiary of Lili Group, have entered Indonesia.
