LeaLea to launch first overseas production facility
01/03/2017
LeaLea will pay up to $50 million for the facility, which is currently owned by PT Taroko, a joint venture between Taipei-based Taroko Textile and Nan Ya Plastics Corp. Taroko Textile has decided to diversify its interests beyond the textile sector and Nan Ya, which is a main subsidiary of the Formosa Plastics Group, does not want to continue its investment.
The new owners plan to upgrade the 50-hectare production site before launching operations in the second half of 2017. It will initially focus on fabric dyeing and finishing, before expanding to yarn manufacturing.
According to Taiwanese media reports, LeaLea chose to invest in Indonesia as it enjoys duty-free status on its exports to Japan and South Korea. Nearly half of the fabric produced at the plant is likely to be exported, with the majority to these two countries. It was also attracted by the strong demand for textile products in Indonesia’s domestic market.
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