Sri Lankan company to diversify business through partnership with Chinese company
Teejay Lanka Plc, which is identified as one of South Asia’s largest fabric mills based in Sri Lanka, is reportedly planning to diversify into lace production through a partnership with China’s Luen Fung Textiles (LFT).
“Teejay is pursuing different growth avenues with diversification of products and this will be the start of this new journey,” Teejay Chairman Bill Lam has been quoted as saying.
Accordingly, Teejay’s plants in India is to start dyeing, finishing and scalloping of raw lace material supplied by LFT under a signed agreement and the finished lace will be sold to customers of both Teejay and LFT.
Teejay, which has operations in Sri Lanka and India, specializes in weft knitted fabrics, and in recent years has ventured into lace dyeing, yarn dyeing and synthetic fabric production, the local media has reported.
Reports further state that company is backed by one of Sri Lanka’s largest apparel exporters Brandix (33 percent stake) and Hong Kong’s Pacific Textiles (28 percent stake).
Meanwhile, LFT, founded in 2006 in Hong Kong, China, manufactures for popular global brands.
OSL take:
The diversification of business by the Sri Lankan company through a joint venture with a Chinese company is indicative of the strength and growth of the country’s private sector as well as the business opportunities in Sri Lanka. Sri Lanka’s economy is on a growth path with all key economic sectors recording a continuous growth. The country’s geographical positioning in the Indian Ocean region and the ongoing development programme have further expanded the business/investment opportunities in Sri Lanka. Foreign businesses/investors could explore opportunities in Sri Lanka.
| Article Code : | VBS/AT/29072019/Z_1 |