In March, 2017, Texhong has officially extended its global outreach to the Central Americas by acquiring a fabric piece dyeing mill near Managua, Nicaragua. The acquisition is part of a deal between Texhong and Nien Hsing, in which Texhong acquired several fabric and garment production facilities and sales offices as part of the Group’s vertical integration strategy. After acquiring the target assets, the Group will be able to capture a mature customer base with internationally renowned brands and increase the annual production capacity of jeans by approximately 17 million pieces. In addition, through establishing a foothold in Nicaragua, the Group can better develop business in the North and Central American markets, taking advantages of the proximity to market.

The Group is already making capital investment plans to further expand production capabilities based on the existing dyeing mill. The goal is to establish yarn spinning capacity of around 80,000 spindles, and grey fabric capacity to accommodate the dyeing mill and build a vertically integrated supply chain on the spot, which shall significantly shorten the production lead time, and increase product stability.