Roo Hsing claims the deal with JD United makes it the worlds largest jeans maker

Roo Hsing claims the deal with JD United makes it the world's largest jeans maker

Taiwan-based garment maker Roo Hsing Co believes it will become the world's largest jeans maker following its merger with Chinese jeans manufacturer JD United.

In an investor presentation yesterday (31 July), Roo Hsing, which supplies companies including Levi Strauss & Co, Gap Inc, Uniqlo and Hennes & Mauritz, outlined the US$388m deal, which was announced in January last year and completed on 20 June.

It said the merger would allow for integration between Roo Hsing's Cambodian and Nicaraguan factories and JD United's factories in Myanmar, Tanzania and China. The integration of the factories will assist in making the supply chain more efficient and cut costs for the group.

Roo Hsing's vice president Hsu Chung-jung was quoted in local press as saying JD United's production is four times that of Roo Hsing, which will bring the annual jeans output to 84m pairs, or 7% of the world's supply.

The group, which provides one-stop service from the raw material, with design, style and material development in Taiwan, also said it would continue to make efforts to improve the production process and develop machinery.

It plans to create a more centralised logistics operation with fabric inspection taking place at one factory and the material being distributed to global plants thereafter. It also said it would introduce ERP and RFID, moving all its global factories to an online operation. 

On the sustainability front, Roo Hsing is introducing a laser machine and an ozone rinsing machine to replace the traditional rinsing process. This will allow a saving of 67% in water consumption, an 85% saving in chemical use and a 62% reduction in energy usage.