2020 may see Eclat Textiles increase its monthly apparel output in Vietnam to over 10 million pieces.
The company has found some outsourcing factories in southern Vietnam, which would add 24 production lines thereby increasing the capacity by 450,000 pieces per month.
The renowned garment and fabric supplier is, however, searching for outsourcing factories in northern Vietnam to add around 20 production lines per month.
This was confirmed by analysts recently at an earnings conference.
The decision holds relevance considering that there has been an increase in orders for next year from some of its major customers.
More on this, Peggy Shih, Analyst, Yuanta Securities Investment Consulting Co. said “The company has seen modest sales growth this year to date due to its lack of capacity and labour in Vietnam; however, this is likely to be resolved in 2020.”
Notably, the top five brand clients account for about 33-36 per cent of Eclat’s total revenue and their contribution is expected to increase by 50 per cent in 2020. Some of its major clients include Nike and Adidas among others.
