PCCS Group Bhd expects its second garment factory in Cambodia to further enhance its earnings in the future.
Deputy group general manager Gan Hoe Lian said by having an additional factory, PCCS would be able to cope with the additional orders from existing and potential clients.
Gan said PCCS' first factory in Cambodia, opened in July 1998, had reached full capacity, producing 60,000 to 70,000 dozen garments monthly.
He said the factory could no longer cope with the increase in orders from international buyers, thus it was logical that the company set up another production base.
PCCS had spent about US$1mil on the new factory, located at Kandal Province on the main road to Sihanoukville Port from Phnom Penh.
“Our new investment is a reflection of the opportunities to capture lower labour costs and potential for further positive returns in the long-term,” Gan told StarBiz in an e-mail interview.
He said the company saw the need to further enhance its competitive edge with the ever changing business environment.
PCCS' second factory would start operations this month with some 300 workers and production would be at 40,000 dozen garments monthly in the first year.
“We are looking to increase production to 70,000 dozen or more in the third year and the number of workers will increase to 3,000 by then,” he said.
Gan said the second factory would be bigger than the first, adding that there was adjacent land for expansion. Both factories would cater mostly to buyers from Europe and the United States.
He said despite having two factories in Cambodia, PCCS had no plans to downsize its Malaysian operation, which would focus on research and development.