Textile maker Far Eastern New Century Corp (遠東新世紀) yesterday said it is upbeat about sales of recycled materials this year amid increasing orders from international brands.For the whole of last year, the company saw cumulative revenue edge down 0.92 percent year-on-year to NT$215.87 billion (US$6.88 billion), partly because of weak sentiment in global garment markets.
“However, the firm saw higher revenue contributions from recycled fiber and textiles last year, as our major brand customers from Europe and the US pay closer attention to social responsibility issues,” a company official said by telephone yesterday. The official, who declined to be named, said that eco-friendly products have higher margins and the demand in the sector is expected to remain robust in coming years.“Unlike other textile products, the demand for high-priced recycled materials is not easily influenced by fluctuations in global oil prices,” he said.
The company said that its plants in Shanghai have over the past two years expanded capacity to meet the need for “green” products, and further capacity increases are viable if necessary. Commenting on investment plans in Vietnam, the official said that the company’s long-term target would not change, despite the US’ withdrawal from the Trans-Pacific Partnership (TPP). “The TPP is not the only reason why we chose Vietnam [as a new production base],” he said, citing Vietnam’s trade agreements with the EU and other Asian countries.
The company plans to invest nearly US$760 million in developing a complete supply chain for fabrics and garments in Vietnam, in an effort to raise its global competitiveness.The new plant in Vietnam, which is to produce knitted fabrics, is scheduled to begin operations in the second quarter of this year. Other new factories for making polyesters are set to start production next year.
Headquartered in Taipei, the company offers a wide range of petrochemical and textile products, such as polyester-related materials, knitted fabric, and apparels. As a main subsidiary of Far Eastern Group (遠東集團), the company also operates real-estate development business and mobile services business, including Far EasTone Telecommunications Co (遠傳電信). The polyester and textiles businesses account for more than 50 percent of the company’s total sales, data showed.
Far Eastern New Century shares rose 0.39 percent to close at NT$26 in Taipei trading yesterday, outperforming the benchmark TAIEX, which increased 0.25 percent to 9,447.95 points.
