Fabric maker Suminoe to set up new electric carpet plant in Vietnam
HO CHI MINH CITY, NNA - Japanese textile maker Suminoe Textile Co. will set up an electric carpet plant in Vietnam, its second overseas base, for exports to Japan.
The Osaka-based firm established a wholly owned local subsidiary, Suminoe Textile Vietnam Co., in the Dong Van III industrial zone 40 kilometers south of Hanoi, with a capital of $1.9 million.
The new company will rent a factory to produce electric heating appliances such as electric carpets and blankets, with its production capacity 30 percent larger than that of the firm's existing plant in China, a Suminoe spokesman told NNA on Thursday.
Electric heating appliances are one of Suminoe's key products in functional goods business, produced overseas solely in Suzhou in the province of Jiangsu since 2003.
Personnel costs are lower in Vietnam than in China, the spokesman said.
Suminoe, which made its first foray into overseas business in 1994 by establishing a Thai unit, now has 14 bases in seven countries, including the United States, India and Indonesia. (NNA/Kyodo)