TAIWAN: Carnival Moves Production To The Philippines

Apparel manufacturer, Carnival, announced earlier this week that it is to shut down its Taiwan plant and move all its export-oriented production lines to the Philippines by the end of the year.Carnival, the largest men's suit exporter in Taiwan, will close its Chungli plant, which manufactures about 10,000 ladies' garments per month, in December. About 50 per cent of the workers will be laid off, based on the Taiwanese Labour Standards Law. The firm plans to set up its second new plant in the Philippines soon, with an initial investment of around US$5m. The company's Kueishan plant, which exports approximately one million men's suits per year, will also move to the Philippines. Carnival now sells about two million men's suits and relevant wears per year. Management said that production costs in the Philippines are low, with labour costs about one fifth of those in Taiwan. The establishment of overseas plants in the Philippines will ensure higher profit margins for the company in the future.The company also plans to boost its R&D facilities, which will remain in Taiwan, Carnival said.