Mainland Headwear Holdings Ltd. (01100.HK) is expanding its production capacity in Bangladesh, aiming for it to contribute 70 percent of the company’s output this year amid growing demand.
Orders have surged after four competitors in China went bankrupt.
Bangladesh currently accounts for 60 percent of the company’s total capacity, the Hong Kong Economic Journal reported on Thursday, citing deputy chairman and managing director Ngan Po-ling.
The company, which makes casual headwear products, will raise the capacity in Bangladesh by 20 percent to 1.8 million units per month this year, and by another 25 percent to 2.7 million units next year.
It also plans to expand its workforce at a sample plant in Bangladesh to 80 from about a dozen.
The company has been in talks to acquire a 30,000 square foot land for US$7 million to build a new factory in the country.
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