Taiwan's long-fiber textile makers turn successfully to functional high-end products

Taipei, May 24, 2005 (CENS)--Facing low-price competition from their counterparts in mainland China, Taiwan's long-fiber textile makers have adjusted the structure of their operations, with some of them, such as Everest Textile Co. and Li Peng Enterprise Co., having expanded or changed part of their production lines to turn out high-end cloths for functional textile products, brand clothes or fashionable leisure clothes.

Over the years, Li Peng has actively developed upstream nylon filament and reduced its output of downstream long-fiber cloths by 20%-30%. Seeing the market niche, the company has laid more emphasis on the development of upholstery cloths and those for functional outdoor leisure wears.

Li Peng now operates 762 weaving machines, but its monthly output has shrunk to five million yards. Nevertheless, the company is now the major supplier of upholstery suede cloths for IKEA, a worldwide known Swedish furniture chain store.

To avoid low-price competition, Everest is now actively developing high-end outdoor leisure cloths for its brand clients, with the output raised to 77% of the company's total production volume from 49%. Today the company's major clients include Nike, Adidas, Puma, and Columbia. And "The North Face," the world's leading manufacturer of outdoor leisure products, will be Everest's potential client.

Everest intends to expand its nylon cloth operation and will boost the output ratio of the product to 30% of the total from the current 10%. To meet the projected expansion for nylon cloths, the company will invest NT$180 million (US$5.29 million) to retool the facilities of lamination and PU plants and expand the related downstream dyeing factory as well.

Some of Everest's recently developed cloths have already gained popularity among its clients. For example, the company's E-1000 perspiration-absorbing & quick-drying fabrics have won orders for 1.5 million yards from Nike in the first quarter of this year; and its water- & oil-proof R & R cloths have obtained orders for six million yards from Levi's in the past two years. Besides, the company is cooperating with 3M to develop a kind of reflected & printed cloths that are good for washing and rubbing.

In the future, Everest will keep focusing on the development of high-end upholstery and industrial-use cloths. This year the company may see a growth of 20% in its operations in Thailand and mainland China and a 10% growth in Taiwan.