Inteletex, UK
Pacific Textiles, Fast Retailing, Crystal International and Trendit Corporation are partnering to invest US$80 million in fabric and garment manufacturing facilities in Bangladesh.
Shareholding in the joint venture is proportional to each partner’s investment. Pacific Texttiles, a leading maker of knitted fabrics, will have an effective 42.33% interest in the joint venture and will finance its investment from internal resources.
The first phase of the production facilities, including a fabric production factory, a power plant, water treatment facilities, a garment production factory and information technology systems, is expected to commence operation in 2014.
To ensure the supply of quality yarns, the JV will separately co-invest with Bros Eastern Company Limited, a top-dyed mélange yarn producer in China, in a yarn manufacturing facility in Bangladesh. The JV will hold 15% of the yarn facility while Bros will hold the remaining 85%.
“The alliance with our partners on the value chain allows us to capture new opportunities and to explore new market with minimal risk. Moreover, this strategic partnership enables the exchange of expertise and technical know-how on all levels along the value chain, providing synergistic benefits to Pacific Textiles’ existing business” said Mr. Wan Wai Loi, Chairman of Pacific Textiles.
Bangladesh is the world’s third largest readymade garment exporter. In the first half of 2014, Bangladesh exported a total of US$10.7 billion worth of readymade garment, representing approximately 76% of the country’s total export value in the period. The country enjoys access to European markets and Japan with no tariffs and quota barriers.
“This investment is a major step in our growth strategy. This joint venture does not only improve our competitive position through geographic diversification, it also provides a platform for the Group’s further expansion into the Japanese market,” Mr. Wan added.
Fast Retailing, Japan, is a group of apparel-related companies which includes casual clothing chain UNIQLO. Crystal International is a garment trading and manufacturing business. Trendit Corp., is owned by a group of Bangladeshi entrepreneurs.
