Toray Industries Inc., which produces the popular Heattech, a heat-retaining fabric used in clothing sold at Uniqlo outlets, will decrease the percentage manufactured in China from 80 percent to 50 percent by 2015. Production will be moved to other Asian nations because production volume in China is fast approaching capacity and also because personnel expenses in China have shot up.
Made of synthetic fibers such as acrylic and polyester, Heattech provides superior heat retention qualities. Of the 70 million or so pieces of underwear using Heattech to be made this year, 80 percent will be manufactured in China and the remainder in Vietnam, Bangladesh and the Philippines.
At a Friday news conference, Toray Executive Vice President Yukihiro Sugimoto said, "A pressing issue will be expanding our production bases outside of China." He noted that production costs were increasing rapidly along the coastal areas of China that have experienced the largest economic growth.
He said Toray would seek out new production bases in Thailand and Indonesia. About 85 percent of all products sold at Uniqlo outlets are commissioned for production in China. Plans call for the ratio to be reduced to about 70 percent over the next two years.
At a Friday news conference, Toray Executive Vice President Yukihiro Sugimoto said, "A pressing issue will be expanding our production bases outside of China." He noted that production costs were increasing rapidly along the coastal areas of China that have experienced the largest economic growth.
He said Toray would seek out new production bases in Thailand and Indonesia. About 85 percent of all products sold at Uniqlo outlets are commissioned for production in China. Plans call for the ratio to be reduced to about 70 percent over the next two years.
At a Friday news conference, Tadashi Yanai, chairman and president of Fast Retailing Co., which operates the Uniqlo outlets, said that one store in Chengdu, China, was closed as a result of anti-Japanese protests on Oct. 16.Yanai also criticized the Japanese government's handling of the protests and said, "It is the obligation of the central government to make it easier for Japanese companies to conduct business." (Asahi)
