Nien Hsing Textile to shut down denim mill amid losses (Shutterstock)
TAIPEI (TVBS News) — Nien Hsing Textile Co., Ltd., a leading denim fabric manufacturer, declared on Tuesday (Nov. 21) the impending shutdown of its mill in Houlong Township, Miaoli County, after finalizing current orders. This decision comes in response to substantial losses amid a challenging industry landscape.
The Taiwan-based global jeans manufacturer, during a recent press conference, confirmed its commitment to legally notifying authorities and providing severance pay to affected employees.
Tsai Shu-hsuan, the company's general manager, cited fluctuating cotton prices and global inflation, which have significantly diminished consumer demand, as key factors leading to a stark reduction in denim fabric orders. Additionally, Tsai emphasized the difficult operational environment, further strained by severe labor shortages and recruitment issues, contributing to considerable losses at the Houlong facility.
From January to October 2023, the Houlong factory contributed about 18.8% to the company's consolidated revenue. Despite this, it incurred a substantial pre-tax net loss of approximately NT＄220 million. The closure, according to the company, is a strategic move to notably reduce operational losses.
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更新時間：2023/11/22 18:55