Gunze Limited is currently constructing a sewing thread factory in Hanoi, Vietnam, which is scheduled to be completed and commence full-scale production in February or March of 2017.
Sewing thread production already started at a nearby temporary factory in August, and production is steadily rising for supply mainly to Japanese-affiliated companies.
The new wholly owned factory is approximately 65,000 square meters including 1,500 square meters for dyeing operations. The production target is 100 tons per month, mainly for supply to factories manufacturing knitwear centering on innerwear and sportswear.
Factory employees are small in number at the temporary factory, but will be increased to more than 200 when production at the new factory reaches 100 tons.
In Vietnam, apparel factories are increasing in number in anticipation of the Trans-Pacific Partnership Agreement (TPP). Gunze plans to increase its share in the Vietnamese market by catering to local procurement needs for sewing threads with its new factory.
Products are wooly polyester and spun polyester threads, for which the previously launched Bangladeshi factory is enjoying favorable sales. These items will also be positioned as the main products of the new Vietnamese factory.
Gunze will also develop business in the jeans sector with coarse-count spun sewing threads for supply to factories manufacturing jeans for the European market.