Thread manufacturer Coats Phong Phu is set to pump $3 million into upgrading equipment and production facilities so it can bolster output by 30 per cent at its HCM City factory.

The increased output will help the company, which was set up in 1989 as one of the earliest joint ventures between British firm Coats Plc and the Vietnam Textile and Garment Corporation (Vinatex) subsidiary Phong Phu Textile Co, meet growing demand for materials by export oriented footwear and garment firms.

Its initial investment capital was $1 million and the firm has upped this figure 14 times to reach $14 million this year. Staff numbers have grown from just 90 to more than 700 and an annual growth of 28 per cent has been turned in over the past decade.

The manufacturer has plants in Hanoi and HCM City and has become a major supplier of top quality sewing and embroidery threads.

Some 90 per cent of its products are sold in 30 countries, mostly in the United States and Europe. Its major customers are sub-contractors of the brands such as Adidas, Reebok, Timberland, Hi Tec and Puma.

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