Taiwan based textile manufacturer Lealea Enterprise Company will pay 50 million USD for PT Taroko’s textile production warehouse in Bandung, Indonesia. Lealea is one of the largest polyester filament yarn and polyester chip makers in Taiwan and has signed the deal to purchase PT Taroko's where they plan to begin production in the second half of 2017.
PT Taroko in Indonesia originally was a joint venture between Taipei-based Taroko Textile Co and Nan Ya Plastics Corp, one of the main subsidiaries of the Formosa Plastics Group. Although Taroko Textile wanted to develop their product line beyond the textile sector, Nan Ya did not want to continue its investment. Taipei-based Lealea on the other hand plan to upgrade the 50-hectare production site of PT Taroko in Bandung. They plan to launch a fabric dyeing and finishing business at the plant before expanding to yarn making.
Lealea decided to invest in Indonesia as this Southeast Asian country has a duty-free agreement for exports to Japan and South Korea. The company will send at least half of their production at the new plant for export to these two countries. The rising demand for textile products within the Indonesian market is another reason behind the Taipei based company’s decision to invest in Indonesia.
The Lealea Group, the founding company of Lealea Enterprise, is also planning to open warehousing facilities in the US later this year under another subsidiary of the Li Peng Enterprises. The warehouse will be able to store about 2,000 tonnes of nylon and polyester chips produced in Taiwan and Indonesia.