Lutai Textile Co., Ltd (Lutai A; 000726.SZ) announced on Friday that it would found a textile subsidiary in Anjiang province of Vietnam.
Requiring a total investment of 30 million US dollars, the subsidiary is expected to have an annual output capacity of 6 million pieces of clothes. The first phase of the subsidiary will go into operation in the fourth quarter of 2016.
The company has invested 150 million US dollars to found a factory focusing on colored woven cloth production, accounting for 14 percent of its net assets. As 80 percent of the company's outputs are for export, Lutai increased investment in Southeast Asia countries like Vietnam recently.
According to the U.S. led Trans Pacific Partnership (TPP), the garments produced from Vietnam will enjoy zero tariff after they are sold to US.
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