Pacific Textiles, one of Hong Kong’s largest circular and warp-knitted fabric manufacturers, continues to invest in a number of its international facilities including construction at its new knitting mill in Vietnam that is nearing completion.
Pacific Textiles headquartered in Hong Kong manufactures customized cotton and synthetic knitted fabric. Its international operations include a production facility in Panyu, South China, besides a minority stake in Textured Jersey Lanka based in Sri Lanka.
Its main production facility at Panyu is a modern plant with a water treatment facility and cogeneration plant. The plant can produce 87 million kg of fabric and employs 6500 workers. The production site has knitting, dyeing, printing, and finishing facilities.
The company has at its credit 5000 designs and specifications of finished fabrics that it produces for many global brands. These fabrics are used by many apparel brands to produce sportswear, innerwear, and swimwear besides making garments for women, children, and men.
In its most recent interim report, for the six months ending September 2022, the company has reported a 12.7 percent drop in revenue, down to HK$2,761.2 million from HK$3,162.9 million in the same period in 2021. Earnings also took a major hit over the same period with the company posting profits of HK$248.2 million, down from HK$347.7 million.
The first Pacific plant in Vietnam plant was expanded in October 2022, which increased its daily capacity by 30 percent. A new plant is also expected to be completed by the end of 2023. The new facilities according to Pacific will satisfy more sophisticated demand from customers. The economy of scale but the greater scale will improve the cost structure of the Group.
At its Panyu plant, recent deprecation in the RMB could also alleviate the recent increases in production costs. The management says it will closely monitor the effect of changing global economic situation and continue to focus on cost reduction, and production efficiency improvement to improve profitability.
