ITG plans to invest $80m into manufacturing complex in Vietnam
07 Jun '06
3 min read
International Textile Group Inc (ITG) has announced that its Burlington WorldWide division plans to build a state-of-the-art cotton manufacturing complex in DaNang, Vietnam.
The complex will be a joint venture operation called Burlington Phong Phu Supply Chain City, 60 percent owned by a subsidiary of ITG (a WL Ross & Co company) and 40 percent owned by Phong Phu Corporation, one of the largest textile and garment enterprises in Vietnam. The investment will exceed US$80 million.
ITG began its exploration within Vietnam last February through its relationship with the Vietnam National Textile and Garment Corporation (Vinatex). Le Quoc An, Chairman of Vinatex, was instrumental in facilitating the relationship and agreement with Phong Phu.
Supply Chain City will offer apparel customers a total supply chain solution from fabric to finished garments. The vertical operation will focus on the production of cotton, bottom-weight fabrics and finished garments. Capabilities will include weaving, dyeing and finishing operations as well as garment sewing and wet processing.
Supply Chain City is expected to be operational within the next 18 months with a dyeing and finishing capacity of 60 million yards. The complex will employ more than 1500 people.
"Vietnam is a country at the forefront of growth and provides an excellent platform for launching Burlington Phong Phu Supply Chain City," commented Kenneth Kunberger, President for Burlington WorldWide.
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