Textile maker Tainan Spinning picks Singapore as new hub for growth alliances
TAIPEI, NNA—Taiwan’s leading apparel and textile producer Tainan Spinning Co. plans to transfer the full $93.76 million stake of a subsidiary in Vietnam to its Singapore unit and develop it as its new regional hub.
Incorporated in November 2018, Tainan Spinning Singapore Pte. Ltd. is Tainan Spinning's third base after its home operations in southern Taiwan and Vietnam where it has two subsidiaries including Tainan Textile Co. which has been slated for the transfer.
The island city between Malaysia and Indonesia will become its new operation center outside Taiwan, an official from its Tainan headquarters told NNA on Tuesday.
The central location in Southeast Asia region and availability of Chinese talent have made Singapore an ideal choice, said Hou Po-ming, president of Tainan Spinning in a Business Weekly report published last year.
To grow its textile business in the region, the company is now seeking industry partners to form strategic alliances. Negotiations are underway for collaborations which can be a merger, joint venture or investment, the Tainan Spinning official told NNA.
Tainan Spinning had planned to set up a factory in Indonesia in 2021 to produce 100,000 to 200,000 spindles of yarns a year. But the impact of the novel coronavirus pandemic now gripping the world has cast uncertainty over the plan.
Founded in 1955, the firm is also considering launching initial public offerings of Tainan Spinning Singapore when the time is right, much depending on the growth performance of the new hub. Its main priority now is to run the Singapore operation smoothly within this year, he said.
Tainan Textile Co. in Vietnam churns out 200,000 spindles of yarns annually, accounting for one third of the Taiwanese group’s entire production, according to the company official. Meanwhile, the stake transfer is subject to approval by the Vietnamese government.
Besides its mainstay business of making and selling textile products which include polyester yarns and filaments, Tainan Spinning also operates T.S. Mall in Tainan .