Daewoo International on Thursday said it has signed a $12 million deal to supply clothing to US department store giant Sears.

Under the contract, Daewoo's textile division will ship men's, women's and children's wear to the United States from next spring.

Daewoo previously delivered $30 million worth of clothes to Sears last year and is says it is currently negotiating with the American retailer for additional orders with a potential value of more than $20 million for the autumn and winter seasons next year.

Daewoo has also been awarded an order worth $8 million to supply women's wear to the US Kmart discount chain.