Taiwanese shoe fabric manufacturer Taiwan Paiho Ltd. recently announced that it has plans to invest US $ 50 million to set up a new plant in Vietnam, which is scheduled to commence operations in the fourth quarter of next year. The new plant will be operated by Paiho’s subsidiary, Paiho Shih Holdings Corp., and will mainly produce jacquard warp-knitted fabrics for global customers.
Considering the rising demand for lower-cost products, manufacturing jacquard warp-knitted fabrics is expected to help the company expand its presence in the global shoe material market. It will install 42 machines in the new plant next year and will increase the number to 350 machines within next five years. The company has spent more than NT $ 140 million (US $ 4.3 million) on capacity expansion projects this year, including building a new plant in Indonesia.
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The company saw sales increase 13.8 per cent annually to NT $ 914 million last month, due to robust demand for its four-way stretchable elastics and two-sided embroidery for sports shoes. From January through last month, combined sales totalled NT $ 9.7 billion, an increase of 13.4 per cent year-on-year.