Taiwan-based clothing manufacturer Hong Ho Textile Co has announced plans to invest US$7.79 million in garment plants in Palau as it looks to expand its foreign production bases following the setting up of a new factory in Mexico.

Directors said that the firm, which has gradually switched its business to downstream garment manufacturing, is expected to see the ratio of revenue from the garment business climb to 50 per cent from the existing 30 per cent if its overseas plants start mass production in 2002 as scheduled.

The new plant in Mexico has a monthly production capacity of 100,000 dozens, but the capacity utilisation rate now stands at only 50 per cent.