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Construction underway at South Korean footwear factory

Released at: 14:31, 30/09/2016

Construction underway at South Korean footwear factory

Photo: Taekwang Industrial

South Korean fiber and textile manufacturer kicks off construction at Can Tho factory.

by Huyen Thanh

The Taekwang Industrial Company under South Korea’s Taekwang Group has kicked off construction of a semi-finished footwear factory at the 2B Hung Phu Industrial Park in the Mekong Delta’s Can Tho city.

The factory will cover 52 ha and a 10 ha area for trade and service buildings and warehouses.

With total investment capital of $171.4 million the company will use technology, machinery and equipment based on the standards adopted by Nike, its primary customer.

“The factory’s production line has modern technology and meets regulations on sanitation and wastewater,” said Mr. Nam Jung Dae, General Director of Taekwang Industrial Co.   

The project includes three stages. In the first stage, 2016-2019, the company will build two manufacturing workshops with capital of $40 million and employ 4,000 workers. It will come into operation in the first quarter of next year.

The second stage of construction is from 2019 to 2020, with operations to begin in the second quarter of 2020. The third stage is from 2020 to 2025, to be operational in the first quarter of 2023.

Once in full operation the factory will employ 30,000 workers, equal to employee numbers at all industrial parks in Can Tho.

Annual revenue is estimated at $500 million with a capacity of 100 million products.

Taekwang Industrial is engaged in manufacturing synthetic fiber and textile products. It supplies acrylic fibers, nylon filaments, spandex, open-end acrylic, acrylic blended spun yarn, worsted wool, tricots and polyester fabrics. It also manufactures petrochemical products, including terephthalic acids, propylene, acrylonitrile, sodium cyanide, ammonium sulphate, acetonitrile and hydrogen peroxide.

The Taekwang Group has invested in Vietnam since 1994 and this is its fourth-largest project in the country. Can Tho has attracted 71 foreign-invested projects with total registered capital of $1.1 billion.

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