Taiwanese garment manufacturer Roo Hsing has now become a multinational corporation after the official finalisation of its merger deal with China-based jeans maker JD United Holdings Co.
The deal between Roo Hsing and JD United Holdings has been sealed at NT $ 12 billion (US $ 388 million).
Roo Hsing positioned itself as the world’s 5th largest denim producer last year with 3.71 per cent growth between 2012 and 2016. The merger has made Taiwan the ‘global centre’ for the production of jeans.
JD United Holdings currently operates in Cambodia, Myanmar, Tanzania, and in some provinces of China such as Sichuan and Jiangsu where it produces jeans around four times that of Roo Hsing.
On the other hand, Roo Hsing operates in Cambodia and Nicaragua. Post-merger, the company will reportedly account for around 7 per cent (approximately 84 million pairs of denim) of the world’s total jeans supply. Both the companies will focus on further strengthening their manufacturing bases.
Roo Hsing is also on the lookout for product diversification by adding polyester and elastic fibres. The manufacturer will source these fibres to start producing jeans other than cotton.
At present, Roo Hsing caters to global fashion brands such as Levis’s, GAP, Uniqlo and H&M.