Daiyin Textile invests 110 million euros in expanding operations in Malaysia

Daiyin Textile (M) Sdn Bhd, one of the main textile and garment manufacturers in China, has announced the investment of about RM500 million (circa 110 million euros at today´s exchange rate) to further expand its operations in Malaysia this year.

The Shandong based textile company’s director and general manager Steven Cheng has indicated that about 40 percent of the total investment would be allocated for phase two of the expansion project at its existing plant in Sedenak industrial estate.

The rest of the capital injection would be invested to set up a new plant manufacturing jeans for export to the United States.

This investment is estimated to increase their current production capacity of pure cotton yarn from 20 million kilograms to 40 million kilograms yearly.

The company has already submitted the development planning for phase two of the expansion project and the Bukit Batu plant to the relevant authorities.

It is the company’s second manufacturing facility outside China, with its first in Sri Lanka.

Deputy International Trade and Industry Minister Datuk Ahmad Maslan said the prospects for the textile and garment industry are good, with projected global demand of 160 billion dollars by the end of 2018.

The United States, Canada, the European Union and countries in the region are the main export destinations for the country’s textile and garment manufacturers.