Yue Yuen Industrial Holdings Ltd, the world’s largest shoe firm, on Tuesday said it has set aside between $150 million and $160 million to increase production lines and boost its materials business.
The company, which makes sports shoes for industry giants such as Nike, Timberland, adidas and Reebok, said it also sees double-digit sales growth and improved profit margins in its current fiscal year.
The firms 254 production lines in factories in Vietnam, China and Indonesia churned out more than 130 million pairs of shoes last year as it posted a record profit of $228.5m on turnover of $1.94 billion.
Executive director Edward Ku said the expansion drive formed part of its plans to broaden its product categories and customer base and boost its share of the global sports and casual shoe market of which it currently has a 16 per cent share.
“We will use US$120 million to increase our production lines in Vietnam and upgrade equipment and machinery in China,” Mr Ku said.
Last June, Yue Yuen announced it plans to acquire a raw material operation from its parent company, Pou Chen, as part of its vertical integration strategy.
