Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News “Foxconn” in the apparel industry: Shenzhou International announced that Cambodian garment factories will expand recruitment to 6,000-10,000 people

“Foxconn” in the apparel industry: Shenzhou International announced that Cambodian garment factories will expand recruitment to 6,000-10,000 people



The Phnom Penh Special Economic Zone (PPSP) recently signed a lease agreement with Chinese knitwear manufacturer Marvel Garment to acquire an additional 3.7 hectares of land. PPSP chairman Tan Kak Khun signed t…

The Phnom Penh Special Economic Zone (PPSP) recently signed a lease agreement with Chinese knitwear manufacturer Marvel Garment to acquire an additional 3.7 hectares of land.

PPSP chairman Tan Kak Khun signed the deal last month with Yan Delin, general manager of Marvel Garmen, the local arm of China’s leading clothing manufacturer Shenzhou International Group Holdings Ltd.

PPSP is located behind the Phnom Penh Special Economic Zone (PPSEZ), an industrial park located in Kantaok commune in Kanbor district on the outskirts of the capital.

Marvel Garment Co., Ltd. is a leading knitted clothing manufacturer in China. In March 2019, it started construction of a factory in the Phnom Penh Special Economic Zone. The company has recruited more than 3,000 workers in early October 2020 and plans to recruit approximately 6,000 workers in late February 2021.

As more production lines are built, PPSP said Marvel Garment is gearing up to prepare dormitories and surrounding facilities to accommodate its goal of 10,000 workers by the end of the year, according to a PPSP press release. .

As the project develops, the number of workers continues to increase. The company is currently building accommodation as quickly as possible and expects to provide enough dormitories for more than 10,000 workers by 2021.

PPSP broke ground on a new leased warehouse on December 21, which is expected to be operational in July. Construction is scheduled to be completed within seven months.

Extended reading:

Chinese knitted garment manufacturers help Cambodia’s economic recovery and provide 17,000 jobs Positions

Marvel Garment Co., Ltd plans to recruit 5,000 employees to prepare for the first phase of operations.

(Information picture)

Marvel Clothing Co., Ltd. is a leading knitted clothing manufacturer in China. In March 2019, The Phnom Penh Special Economic Zone has started construction of a factory and is now preparing to start the first phase of operations in early October.

The company plans to recruit 5,000 employees. The main operation scope of its factory in the first phase is the production of masks, specially exported to the Japanese market.

In addition, the business scope of Marvel Clothing Co., Ltd.’s investment projects includes clothing manufacturing business. The investment project covers an area of ​​43 hectares, and up to 16 production areas are expected to be completed in 2021, creating 17,000 jobs.

“Despite the current severe challenges caused by the new pneumonia epidemic, we have decided to move forward in order to fully prepare and help Cambodia’s post-epidemic economic recovery. Therefore, we We will continue to create more job opportunities in Cambodia.” Mr. Yan Delin, General Manager of Marvel Apparel Co., Ltd., said regarding this recruitment move.

It should be mentioned that as of now, there are about 108 registered companies investing in the Phnom Penh Special Economic Zone, of which 88 are operating, 14 are in the process of preparation, and another 6 Home has ceased operations. To date, the total investment in the Phnom Penh Special Economic Zone has reached US$667 million.

Public information shows that Shenzhou International is the largest vertically integrated garment manufacturing company in China, mainly providing customers with high-quality knitwear and clothing through OEM. The company’s main customers are internationally renowned brand clothing retailers, with the top four customers being Nike, Adidas, Uniqlo and Puma. The sales market covers mainland China, the European Union, the United States and Japan. In terms of production capacity, in addition to the production base at the Ningbo headquarters, there are also domestic factories in Anqing, Anhui and Quzhou, Zhejiang, as well as overseas factories in Phnom Penh, Cambodia, Ho Chi Minh City and Xining Province in Vietnam. The export volume ranks first among Chinese garment export companies.

Financial reports show that since Shenzhou International was listed in 2005, until 2018, the compound annual growth rate of revenue reached 17.83%; the compound growth rate of net profit reached 21.7%. As of the first half of 2019, revenue was 10.28 billion yuan, a year-on-year increase of 12.2%; net profit was 2.416 billion yuan, a year-on-year increase of 10.9%. Excluding the 83 million loss from retail, net profit increased by 13.3%.

From observation, among the four major customers, Nike, Adidas and Puma are all sports brands, and their proportion has been rising since 2008. As of 2019H1, their combined total revenue exceeded 60%. According to Bloomberg forecasts, eNike’s revenue from fiscal year 2020 to 2023 will be 42.197, 456.24, 49.290 and 52.949 billion US dollars respectively, with a compound growth rate of 7.86%; net profits will be 47.02, 53.56, 6.135 and 7.042 billion US dollars respectively, with a compound growth rate of 14.98%. Adsidas’ revenue from fiscal year 2020 to 2023 was 26.136, 280.55, 30.087 and 32.340 billion US dollars respectively, with a compound growth rate of 5.72%; net profits were 21.53, 23.93, 2.676 and 3.074 billion US dollars respectively, with a compound growth rate of 11.20%. aPuma’s revenue from fiscal year 2020 to 2023 was 5.989, 66.48, 7.308 and 7.81 billion US dollars respectively, with a compound growth rate of 9.21%; net profits were 2.85, 3.48, 426 and 525 million US dollars respectively, with a compound growth rate of 24.12%.

In recent years, with the pressure on domestic environmental protection and the loss of labor cost advantages,�In the context of high risks for small enterprises in building overseas factories, the production environment of small enterprises continues to deteriorate, and the industry begins to consolidate. Large enterprises including Shenzhou International have multiple advantages, stronger risk resistance and profitability, and are constantly Increase its own share.

The trends in the textile and garment industry in recent years have confirmed that operating pressure has increased, and industry consolidation is the general trend. First of all, the rise in labor costs is due to difficulty in recruiting workers, and behind the difficulty in recruiting workers is the aging population. The decline in the working-age population caused by globalization. Therefore, the domestic labor cost advantage no longer exists. Secondly, as the trade environment further deteriorates, small companies will face a more difficult production environment and weak risk resistance, while leading companies will further increase their share. Shenzhou International’s unique high profit level in the industry also reflects its competitiveness. Advantage.

Shenzhou International has been in a state of short supply of orders for a long time. Future growth will come from the improvement of production capacity on the one hand, and the adjustment of customer and product structure on the other. From the perspective of production capacity upgrades, It is expected to maintain an annual growth rate of 10-15%, and the three new factories in Vietnam and Cambodia are expected to have a total of 30,000 employees by 2023. </p

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Author: clsrich

 
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