Teejay to diversify into lace; signs MoU with Luen Fung

A supply arrangement entered into by Teejay as a precursor to the developments envisaged in the MoU with Luen Fung Textiles (LFT) paves the way for the latter to design and supply lace as a raw material to Teejay. After purchase, Teejay will sell the finished lace to customers who place orders with both Teejay and LFT.

As a first step, Teejay will commence dyeing, finishing, and scalloping of raw lace material supplied by the prospective joint venture partner, Luen Fung Textiles of China, Teejay said in a filing with the Colombo Stock Exchange. This will be undertaken at the manufacturing facilities of Teejay India, the announcement said.

“Teejay is pursuing different growth avenues with diversification of products and this will be the start of this new journey,” said Teejay company chairman Bill Lam.

“We are confident that this partnership will give us a distinct edge with clear growth potential with our customer base,” added company CEO Shrihan Perera.

“The addition of lace to our portfolio significantly enhances the versatility of the company’s offering and its earning potential. We are excited at the prospect of working with LFT to augment our knowledge and capabilities and to expand our customer base,” said Teejay Lanka dputy CEO Pubudu de Silva.

Founded in 2006 and based in China-Hong Kong, LFT is a reputed company in the business of research and development, manufacturing, selling, marketing, distributing, supplying raw materials and other related items used in the manufacture of lace and related products. The company manufactures for popular international brands such as Target, JC Penny, Maidenform, Fruit of the Loom, Vanity Fair, Pacific Brands, Hanes, Kmart, Walmart, Lidl, and Bonds.

Teejay Lanka PLC is a public quoted company with 39 per cent public ownership. The company is backed by Sri Lanka’s largest apparel exporter, Brandix Lanka which has a 33 per cent stake and Pacific Textiles of Hong Kong which owns 28 per cent of the company. (RKS)

ALCHEMPro News Desk – India