Daiwabo halts RI expansion

Sat, 13 Sep 1997 | Source: REUTERS

TOKYO (Reuter): Daiwabo Co Ltd said yesterday that it has temporarily halted the transfer of spinning and weaving facilities in Japan to its Indonesian factory due to the economic turmoil there.

A spokesman for Daiwabo said the company had been moving the facilities at its Izumo factory in western Japan to Indonesia since 1995 in order to improve the quality of textile products at its overseas plants.

"But due to deterioration of the local market as well as the recent currency turmoil, we have been unable to increase production there," he said.

He added that the company was also conducting a feasibility study on other Asian countries for a possible new production site.

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