Taiwan's Singtex Industrial, known for its commitment to supplying eco-friendly functional textiles, is gearing up for mass production at its newly constructed high-precision dyeing and finishing plant in northern Taiwan by the fourth quarter of 2024. This new facility is expected to significantly boost the company's overall revenue for the year.
Located in the Guanyin Industrial Park, Taoyuan City, the plant spans 40,000 square meters and was built at a total cost of NT$2.3 billion (US$71.92 million). The facility began trial production in the second quarter of 2024 and is anticipated to reach a monthly production capacity of 4.5 million yards once it enters mass commercial production in the fourth quarter, according to data released at Singtex's August 22 earnings call event.
The company has announced that depreciation expenses for the Guanyin plant will begin in the third quarter, estimated at an annual rate of NT$100 million. Capacity utilization is projected to reach 30-40% in the second half of 2024 and continue to increase in 2025.
Singtex emphasized that the plant's construction aligns with its commitment to environmentally friendly processes and advanced technological standards. By maintaining control of its technology and equipment in Taiwan, the company believes it can enhance its competitiveness.
Singtex has outlined five key strategic development directions for 2024 and beyond: expanding dyeing and finishing output and optimizing precision coating and lamination techniques; improving process management for efficiency and profitability; offering high-value, vertically integrated services; expanding into outdoor, sports, medical, and military applications; and advancing eco-friendly, low-carbon products to support a green supply chain.
While functional textiles have been Singtex's core business, the company has shifted focus in recent years due to the urgent need to address climate change. This shift includes investments in a forward-looking R&D center and an eco-friendly dyeing and finishing center, allowing Singtex to promote sustainable textiles such as its innovative coffee yarn, made from recycled plastic bottles and coffee grounds. This yarn offers benefits like odor control, quick drying, and UV protection.
Singtex's business performance in 2024 has seen a notable recovery, largely driven by a government contract for military uniforms, which has helped offset the negative impact of excess inventory in European and American markets. Despite the uncertain economic outlook, Singtex remains optimistic about its growth prospects for the rest of the year.
For the full year of 2024, Singtex anticipates single- to double-digit revenue growth compared to 2023. The final growth rate will depend on shipment performance in the second half of the year, with overall revenue expected to surpass that of 2023.
