Daxin Industrial (1315), a major domestic raincoat manufacturer, will expand production at its Dafu plant in mainland China next year. Lin Hongbin, general manager of Dafu Plastic Industry, said yesterday (21st) that the company will invest in adding two new sewing lines and hire 40 more employees, bringing the total workforce to nearly 200. With the added production lines, the sewing capacity at the Dafu plant is expected to double next year, which will support growth in the plant’s raincoat and apparel operations.
Additionally, Daxin revealed that its Daye plant, located in the Tan Thuan Export Processing Zone in Ho Chi Minh City, Vietnam, has fully utilized its 2,400 pyeong (approx. 8,000 sqm) of land and currently has no extra space for expansion. As a result, the company is looking for a new site to build Daye Plant 2. In the future, besides producing raincoats and apparel, the new plant also plans to introduce new products. Daxin stated that it will search for land within a 50-kilometer radius of the existing Daye plant to facilitate the setup of the new facility.
Daxin’s overseas plants include the Dafu plant and Dongguan plant in mainland China, the Myanmar plant, and the Daye plant in Vietnam. Among them, the Dafu plant focuses on raincoats and apparel for hiking and fishing gear; the Daye plant mainly produces hunting apparel and casual raincoats and clothing; the Myanmar plant specializes in outdoor and hiking-related raincoats and apparel.
The Dafu plant owns 135 mu (approximately 272,000 pyeong) of land. However, some of its customers’ raincoat and apparel orders have been rescheduled within the group and redirected to the Daye plant and the Myanmar plant. This has led to some unused land and factory space at the Dafu plant.
To make better use of the idle land and buildings, Lin Hongbin revealed that the Dafu plant has leased 38.6 mu of vacant land to a local driving school for 15 years. Additionally, a 1,800-square-meter factory building has been rented out to a company that manufactures piston rings. The company estimates an annual rental income of around 500,000 RMB.
The Dafu plant’s clientele includes customers from Japan, Europe, the United States, and New Zealand. One leading European hypermarket retailer purchases a variety of raincoats from the Dafu plant, including poncho-style fishing apparel, hiking gear, and bicycle rainwear in single styles, colors, and sizes. These products have proven very popular, making this client one of the Dafu plant’s major accounts.