TAIPEI (Taiwan News) — The merger and acquisition procedures between Taiwanese clothing manufacturer Roo Hsing Co. Ltd . (如興股份有限公司) and Chinese company JD United Holdings Co. Ltd. (玖地集團) were completed today, officially making Roo Hsing the largest manufacturer of jeans in the world once the deal goes into effect on August 1 of this year.
After the merger, JD Holdings and Roo Hsing will concentrate their manufacturing bases. JD United Holdings currently has operations in Cambodia, Myanmar, Tanzania, and well as in the Chinese provinces of Sichuan and Jiangsu. Roo Hsing has base operations in Cambodia and Nicaragua.
Levis's is their most celebrated, and powerful, customer. Other brands, like Gap, Uniqulo, and H&M are also faithful Roo Hsing customers.
Between 2012 and 2016, Roo Hsing grew at a rate of 3.71%, making them the world's 5th largest jeans producer in 2016. Their growth is expected to increase at a rate of 5.31% through 2021.
Roo Hsing agreed to the merger with JD Holdings, buying it for NT$ 12 billion (US$388 million) in 2015. The merger will make Taiwan the global center for the production of jeans and is being called a win-win for the business and investors.
Roo Hsing Vice President Hsu Chung-jung (徐仲榮) stated that after the merger, Roo Hsing will produce 7% of the world's jeans supply.
Despite athleisure-style leggings briefly overtaking jeans as the trendiest trouser for women and youth, experts estimate that the fad is already slowing and jeans will soon regain their stronghold in the clothing market. Levi's in fact continued to operate at a profit during this craze.
Roo Hsing will not only limit its jeans to 100% cotton, but will diversify styles by adding polyester and elastic fibers, sourced by Taiwanese producers such as Everesy (宏遠) and Tai Yuen(台元).
Chung was very proud to list trousers for pregnant women as a specialty product of Roo Hsing. This project is supported by H & M and offers more options of trousers available around the world.
Another global garment trend is large international brands integrating their suppliers. Levi's, for example, plans to consolidate down to only 5-8 suppliers over the next few years, the only two east Asian companies being Roo Hsing and Hong Kong-based Crystal Group (晶苑).