According to local Beijing newspapers, Luen Thai, one of Asias largest apparel manufacturers, saw net income drop 4% for the first six months of the 2004 to $13.1 million. The company is currently working on constructing a new 300,000 square foot factory in Dongguan Supply Chain City which is scheduled to open in the fourth quarter of this year.
With U.S. apparel quotas set to expire, Luen Thai is also in discussions for two more $15 million manufacturing facilities, one in Panyu, Guangdong province and another in Qingyuan, which is expected to be operation in the second half of 2005. Additionally, the company plans to invest $2 million to increase production in their Hong Kong Facility.
Luen Thai is actively pursuing acquisition and joint-venture opportunities as well, and has recently signed a joint venture with Yue Yuen Industrial Holdings, the worlds largest footwear manufacturer.
