TAIPEI (Taiwan News) — Taiwan shoemaker Pou Chen is to set up a non-leather footwear manufacturing unit after pledging to invest NT$8.42 billion (US$276 million) in the Indian state of Tamil Nadu.

Pou Chen, the global leader in contract shoe production, established a memorandum of understanding (MOU) with the Tamil Nadu government. It will set up the factory through its subsidiary, High Glory Footwear.

The MOU outlines plans to supply vital infrastructure support, including electricity, water, telecom services, and road upgrades. Additionally, the MOU encompasses land allocation and tax subsidies to facilitate the project.

Investment is to be carried out in two phases over 12 years. The venture is expected to provide employment opportunities for more than 20,000 people.

Pou Chen's commitment follows in the footsteps of other footwear makers. Earlier this month, Taiwan-based shoe maker, Hong Fu Industrial Group, made a similar announcement on a NT$3.72 billion (US$122.17 million) investment at the same location.

Pou Chen previously said it cut 6,000 jobs at its Ho Chi Minh City plant in Vietnam due to weak demand.