While some Chinese textile firms have relocated to the United States, it has yet to become a trend, Texhong Textile Group Ltd. (02678.HK) chairman Hong Tianzhu said.
The industry has a competitive edge in its supply chain in China, with ample room for market and technical revamps, Hong said.
His comment came amid reports by domestic and offshore media on a purported trend of textile firms moving from China to the US.
Hong said that in the light of the central government’s “one belt, one road” strategy, his firm will set up a cotton thread plant in Xinjiang with partners.
The new plant will begin construction this year and start operating next year, he said.
Meanwhile, Texhong Textile is considering expanding its production capacity in Vietnam in view of the Southeast Asian country joining the US-led Trans-Pacific Partnership.
A new line for the production of 250,000 spindles per year will be built in the second half of this year and start running next year, Hong said.
The firm may also invest 600 million yuan (US$95.2 million) in expanding its downstream businesses.
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