Chinakey: Producing in Cambodia to stay competitive

A new Post "Chinakey: Producing in Cambodia to stay competitive" was written on the February 23, 2012 at 3:03 pm on "Textile Global - Textile and Fashion News".

To bolster competitiveness, many companies have chosen to set up
factories in lower-cost countries and Chinakey (Hong Kong) Ltd is one
of them. As the knitwear manufacturing subsidiary of Hong Kong-based
Addchance Holdings Limited, Chinakey has been operating two knitting
mills in Cambodia, on top of production facilities in China. Francis
Tsang, Director-in-charge of Chinakey's Sweater Knitting Section,
shares with ATA the company's development in Cambodia, a strategy of
the company to raise its production efficiency. *ATA: Chinakey is a
manufacturer high volume, quality knitted sweaters for over 1,400
clients in over 16 countries. What drove it to set up mills in
Cambodia?*

Mr Tsang:

We invested in production facilities in Cambodia in order to raise
our production efficiency. They carry out knitting, linking, and
finishing processes. With them, we ship knitted sweaters directly
from Cambodia to Europe and the US. This effectively increases
production efficiency, reducing costs and dependency on
subcontractors and hence giving our customers peace-of-mind on their
orders. Also, our mills in Cambodia deploy 200 state-of-the-art
computerized machines in order to reduce the use of the human
resources and lower the production costs. At present, our mills in
Cambodia produce over 200 million pieces of hosiery and about 300
million dozen socks yearly. They include men's, women's and
children's hosiery, as well as long socks, pant socks and terry sport
socks. *ATA: You mentioned the use of advanced machinery to lessen
the dependence on labors, of which Cambodia is suffering from a
shortage now. What machines do you have in your mills in Cambodia?*

Mr Tsang: We have installed Stoll's computerized knitting machines in
our factories in Cambodia. We have also employed 200 state-of-the-art
computerized machines, as well as 730 sets of advanced hosiery
machines (DK-B318 Golden Series fully computerized hosiery machines
manufactured by Taiwanese Da Kong Enterprise Co). With them, we are
able to resolve the problem of labor shortage in Cambodia. *ATA: As
far as knitwear is concerned, what distinguish Chinakey's products
from those of your competitors?*

Mr Tsang: With an established reputation of high quality and
reliability, we manufacture for world renowned multi-national fashion
chains. By offering a broad product range and creative design
innovation, our team is able to satisfy even the most demanding
customer needs. We keep on-hand a large library of yarns and sample
knit panels. This offers clients an immediate sample of the industry's
most up-to-date colors and designs. Chinakey also has a comprehensive
sweater library where we keep on-hand a vast collection of each
season's most popular styles. This provides our customers with variety
and information so that they can make informed, profitable decisions.

*ATA: What are the biggest challenges to Chinakey at the moment? How
is your company coping with them? What is your company's strategy to
expand your market in future?*

Mr Tsang: While the Cambodian labor force is a key challenge because
of the rising wages, we are also facing fierce competition from
Bangladesh because of the reduction of unit prices, and a lot of
orders have been moving to Bangladesh. Buyers always put Bangladesh as
their first priority in placing orders, while Cambodian textile
manufacturers are their second choice. In order to continue our
development in Cambodia, our strategy is to increase the use of
computerized machines, and on the other hand, decrease our dependence
on the manpower, and hence reducing our overhead to control the
expenditure. Compared with Vietnam, Indonesia and Thailand, Cambodia
is still enjoying lower wages.

*For the full version of this article, please refer to the forthcoming
Feb/Mar issue of ATA Journal.*

See the rest here:
Chinakey: Producing in Cambodia to stay competitive

http://www.textileglobal.com/2012/02/chinakey-producing-in-cambodia-to-stay-competitive.html

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