Establishment of a Joint Industry for Producing High Class Plain and Yarn Dyeing Textiles in Shandong, China
2004-11-02
Tomen Corporation, Toyota Tsusho Corporation, Sojitz Corporation and Daiwabo Co., Ltd. have reached an agreement with Qingdao Jifa Longshan Investment Co., Ltd. to establish "Qingdao Jifa Longshan Dyeing & Weaving Co., Ltd." as a joint company for producing plain and yarn dyeing textiles using high class cotton and cotton mixed polyester. The production company will be set up at the Longshan Industry premises, located in Jimo City, Shandong close to Qingdao City, China.
The capital of Qingdao Jifa Longshan Dyeing & Weaving Co., Ltd. is 20 million USD. Total gross investment is 30 million USD. The company will begin operations at the end of 2005.
For the first year of operation, target production will be 9,000,000 m; target sales will be 16 million USD.
In the new company, Tomen and Sojitz will oversee sales. Sojitz will also provide raw materials. Toyota Tsusho will be responsible for machinery and Daiwabo will be responsible for technical issues. | |  |
Tomen and Toyota Tsusho are cooperating in an effort to establish a new business model in China and build up production organization. Tomen already has many production bases in China, such as lining material industries in Hong Kong and Shanghai, and sewing industries in Shanghai and Nantong. Tomen is also partner in many other industries. Tomen aims to develop synergism of production by linking up between its own industries and partners in China, included this new joint industry.
The first target markets for sales are Japan, Europe and the United States. In the future, China will be a target market as well. For this reason, Tomen is lining up all of its industries and strengthening its consistent processes, from raw material through textile production as package business, trying to make overseeing of all the processes easier.
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