ISRAEL: Bagir to expand Chinese suit factory

By just-style.com | 23 March 2006

Suit maker Bagir Ltd is to invest ILS2.5m (US$0.54m) on expanding production lines at its factory in China.

The company opened the Dalian Bagir factory two years ago in a joint venture with Chinese textile company Dayang Group, and now says it wants to hike its manufacturing capacity from 1,400 to 1,800 suits a day.

According to Bagir CEO Ofer Gilboa, the ILS23m factory was set up to take advantage of the fact that China had become global hub of textile manufacturing with its low manufacturing costs.

At the time it meant Bagir was one of the few tailoring companies to own and manage a production site in China, rather than operate via subcontractor. The direct investment has enabled it to better monitor and control the factory's outputs, ensures the exact garment specifications, and provide better access local raw materials.

Gilboa added that Bagir's presence in China continues to help the company maintain its competitive edge in the market - and will also contribute to its growth plans for the next three years.

The majority of the Chinese factory's output is exported to Europe, especially to UK fashion chain Marks & Spencer.

The joint venture in China was a key milestone in Bagir's long-term production strategy, which is based on operating in three global areas: the Middle East (Egypt and Jordan), Eastern Europe (Romania and Ukraine) and Southeast Asia (China and Vietnam).

Sectors: Apparel, Finance, Manufacturing

Companies: Bagir