Taiwanese garment companies have been shifting their production facilities from Central America to Southeast Asia and mainland China.
Leading textile companies such as Makalot Industrial Co, China Man-made Fiber Corp, and Tainan Enterprises Co have either closed or downsized their production facilities.
Main reasons behind these relocations of facilities are cancellation of global textile quotas in 2005.
Taiwanese garment factories located in Central America had to import fabrics from Taiwan, which usually takes 35-40 days to reach the destination, Chou Li-ping, Chairman of Makalot's stated.
Taiwanese companies selected Central America only because closeness to the US largest market for garments and textile products.
Several Taiwanese companies, which continue their production facilities in Central America include Nien Hsing Textile Co, Roo Hsing Garment Co, and Yangtex Hondu Co Ltd.
Taiwanese garment makers who have shifted or planning to shift their facilities to Southeast Asia are opting for mix management system.
In mix management model, Taiwanese are hired for top management, mainland Chinese as middle-management, and locals as operational level.
Some of Taiwanese companies are doubtful about risk such as labour strike involved there.
marketing@alchempro.com
