TAIPEI — Tainan Spinning Co. Ltd., one of Taiwan’s leading textile firms, said yesterday that it has decided to invest NT$152.5 million to set up a garment production plant in China’s Henan Province.
The company’s board of directors approved the investment project, eyeing the relatively low labor costs in the Chinese hinterland away from the coastal provinces.
The company said it expects to take advantage of the investment incentives offered by the Henan provincial government, such as preferential rental rates for foreign investors setting up footholds there.
The new Henan plant, which will occupy 23,000 square meters, is scheduled to begin operations in the first quarter of next year with an initial monthly production of 160,000 units, Tainan Spinning said.
The monthly production capacity of the new facilities is expected to expand to 300,000 units by 2012, it said.
The Henan production base will target the huge Chinese domestic market, as well as exporting to Japan.