Crown Group Setting Up High-End Luggage Plants in Taiwan

Taipei, Jan. 18, 2011 (CENS)--Attracted by the business opportunities arising from the cross-Taiwan Strait Economic Cooperation Framework Agreement (ECFA), Crown Luggage Group, a Taiwanese-invested firm in China and the world's largest luggage maker, has decided to return to Taiwan for investment by establishing two new plants in Wuri and Taiping in Taichung City.

Chiang Chih-tien, vice president of the company, reported that the two plants will turn out high-end models, with part of its output to be shipped to the Chinese market without any tariff, thanks to the effect of ECFA. In addition to the privilege, Chiang also attributed the company's investment plan in Taiwan to soaring labor cost in China.

Lojel Plastic, an affiliate of Crown Group in China, will also return to Taiwan investing NT$150 million to set up a plant in Wuri for turning out environmentally-friendly plastic materials, such as fabric coating, which will be supplied to the luggage plants of Crown.

The new Taiwan facilities will help Crown Group increase its consolidated revenue by 30% to NT$4 billion this year, according to Chiang.

Founded in 1952, Crown Group started as an OEM (original equipment manufacturing) luggage maker before extending to own-brand sales, for the brands of “CROWN” and “LOJEL,” in recent years.

Crown Group now owns four plants in Zhongshan of Guangdong Province, turning out 400,000 pieces of luggage a month, as well as other leather goods. Lojel also has two plants in China.