Indian & Asian producers grab Youngor Group's orders
10 Jun '05
2 min read
Largest producer of men's shirts and suits in China, Youngor Group informed that Indian and Asian manufacturers are snatching its orders from US and EU, due to the trade friction between China with EU and US.
Companies such as, Marks & Spencer, Polo Ralph Lauren and Tommy Hilfiger imports nearly 50,000 shirts per month from the company, said chairman Li Rucheng.
The trade disputes has created a negative impact on Chinese enterprises," he added, "For the third quarter, we are seeing changes as US companies start to shift orders of trousers to India."
Li explained, to get fruitful results of the removal of textile quotas, Mainland textile makers, including Youngor and Shandong-based Weiqiao Textile had invested a total US$14.3 billion last year to raise its production.
"Restrictions over Chinese textile shipments threaten profit at Youngor because it counts on higher sales to lower costs. The company targets to earn more than US$1.60 per shirt it exports, after deducting production costs, excluding wages, that are higher than its rivals in China and Southeast Asia," opined Li.
The Youngor Group which also produces dyed fabrics, knitwear and operates hotels, had employed 20,000 workers at the end of previous year.
"China should challenge the United States and EU complaints at the WTO. China's competitive strength lies in its textile exports to Europe and the United States," concluded Li.
marketing@alchempro.com
