Hansae Haiti Localizes Synthetic Fabric Sourcing for Speed and Savings

Hansae Haiti Localizes Synthetic Fabric Sourcing for Speed and Savings

The clothing and textile business Hansae Co. is based in South Korea., Through a strategic partnership with fabric manufacturer Willbes Dominica Synthetic Mill, Ltd. is developing a localized sourcing stream for synthetic textiles for its Haitian manufacturing operations.

On May 2, at Hansae’s corporate office in Seoul, the Memorandum of Understanding was signed. Daymond Ik Whan Kim, president and CEO of Hansae, Kyung Kim, and Chan-hyeok Lim, president of Willbes, all attended, reaffirming their commitment to strategic collaboration.

The Haitian production division of Hansae employs 60 lines across three factories and has a monthly output capacity of about 2 million garments. Willbes manufactures chemical fiber fabrics in the Dominican Republic, where it has manufacturing facilities that can produce 30 tons of fabric daily. This partnership’s primary objective is to provide Hansae with high-quality Willbes synthetic fiber, which has been produced in Dominica for 36 years, as well as to create synergy by operating the production line flexibly and responding to customer needs quickly.

Hansae Haiti Localizes Synthetic Fabric Sourcing for Speed and Savings

The two businesses anticipate that this agreement will reduce lead times by nine to ten weeks when compared to Asian sourcing and result in a 30% decrease in duty costs. Because its men’s crewneck shirts are made with fabrics from Asia, Hansae previously was not able to use the trade preference programs Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE) and Haiti Economic Lift Program (HELP) Act for those products. This is an example of duty benefits. Now that the fabric is being sourced locally, this category qualifies for export tax benefits, saving an average of 25–32%.

On Hispaniola Island, which is home to Haiti and the Dominican Republic, Hansae and Willbes are dedicated to building the strongest and most dependable strategic cooperation possible and expanding their market share in the United States. The manufacturer of ready-to-wear (RTW) includes Americans. brands and retailers such as Customers include American Eagle Outfitters, DKNY, JCPenney, Ralph Lauren, and Under Armour.

“It has become more important than ever to respond promptly to the rapid changes in the market and the corresponding needs of the buyers,” said At the time of the strategic partnership agreement signing was Daymond Ik Whan Kim, vice chairman of Hansae Fashion Worldwide. “The rapid market response and the creation of a reliable supply chain that result from this strategic alliance between the two manufacturers will significantly sustain improving product quality.”

Hansae first arrived in Haiti in 2016, and each year it has steadily increased production. Hansae operates the biggest facility of Korean clothing companies in Haiti. It supports the local economy and employs more than 3,000 residents. The business has been making investments in Central America to meet the rising demand for nearshoring. Hansae announced a new vertical, sustainable facility in Guatemala last fall.

Hansae is concentrating on making its production more sustainable across its manufacturing facilities in Asia and the Americas, including lowering energy and water use. Hansae wants to use 20% less water overall by the year 2030. “As a main fabric supplier factory for such brands as Gap, Old Navy, Target, Kohl’s, Pink, and Walmart, the factory’s water use is directly connected to the water consumption efforts of the brands,” said Ik Whan Kim.

Reference: sourcingjournal.com

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