Lealea Enterprises, one of the largest polyester filament yarn and polyester chip manufacturers in Taiwan, is planning to acquire PT Taroko’s production facilities located in Bandung, Indonesia for US $ 50 million. The supplier is also reportedly going to set-up its first overseas factory in Indonesia later this year. Additionally, it will invest in Indonesian site in the second half of 2017.
PT Taroko is a joint cooperation between Taipei-based Taroka Textile Co. and Nan Ya Plastics Corp, one of the main subsidiaries of the Formosa Plastics Group. While Taroko Textile wants to diversify its interests beyond the textile sector, Nan Ya does not want to continue its investment in PT Taroko. So, the Taipei-groomed company Lealea grabbed the opportunity to assume the facility, which it plans to upgrade, to start its business in Indonesia.
Also Read – Everest Textiles to start new plants in Ethiopia and US in 2017
The manufacturer believes that since demand for textile products in the Indonesian market is strong, and because textile exports from Indonesia to Japan and South Korea have also duty-free status, the new plant will export half of its production. Strong demand for textile products in the Indonesian market is also a reason behind the Taipei based company deciding to invest in Indonesia.
It may be mentioned here that James Kuo, Chairman of the company has repeatedly sent delegations to Bandung to evaluate the 50-hectare production site and conduct an assessment on how to upgrade production facilities there.
