Japan-Bangladesh RMG jt-venture in the offing

FE Report

Two Japanese companies - Kurabo Industries Ltd and Matsuoka Corporation Ltd - have signed a contract with a Bangladeshi apparel company to set up a joint-venture (JV) in the country.

Capitalised at US$ 5.88 million, MK Apparels Limited, the Bangladeshi partner, is scheduled to commence operation from March 2011, manufacturing mainly woven garments at an annual rate of 2.4 million units, a company source said.

"Annual sales of the MK Apparels Limited are expected to be worth approximately 300 million Japanese yen," he added.

With the establishment of this new JV, cooperation among MK Apparels and production bases in Japan, Thailand, Indonesia and China will enable Kurabo and Matsuoka to meet various needs of customers in Japan, Europe and the US, official sources said.

Kurabo Industries Limited is a Japan-based manufacturer engaged in six business segments including textile and chemicals. The textile segment is engaged in manufacture and sale of threads, fabrics, textile, non-woven fabrics, knits, reinforced nets and secondary textile products, as well as staining, arrangement and processing of synthetic fabrics.

The other partner of the joint-venture, 'Matsuoka Corporation,' has a long successful history of garment production in China. Under the present world-wide movement of "China+1", it is indeed a great decision to choose Bangladesh as a new production point, the company source added.

Ready-made garment (RMG) is the leading industry of Bangladesh which consists 75 per cent of its exports. The country's RMG industry is a major supplier for the North American and European markets. However, it has been a major challenge for Bangladesh so far to open up Japanese apparel market.

"It is a golden opportunity for Bangladeshi RMG sector to expand its apparel export to Japan, by learning valuable lessons and know-how directly from Japanese garment manufacturers," the company source added.