Kukdong Invests $2.5 Million in Mexico Plant... "Expanding Factory to Handle Overflowing Orders"

[Asia Economy Reporter Hyunseok Yoo] Clothing manufacturer Kookdong announced on the 21st that it will invest 2.5 million USD (approximately 2.7 billion KRW) in its Mexico factory to handle the increased order volume.

The company plans to purchase a factory in the Puebla region of Mexico and expand fabric production facilities such as knitting machines, dyeing machines, and brushing machines. Through this, it aims to expand the facility size and increase production capacity (CAPA) to accelerate supply speed and prepare for the post-COVID-19 era.

Kookdong cited the spread of COVID-19 in Southeast Asia, the main supplier region for US clothing products, and the surge in ocean freight rates as factors causing supply instability and increased supply volume. The Mexico factory addresses these distribution network issues and can supply products quickly and stably, attracting major US buyers, according to the company.

A Kookdong official said, “We will quickly handle the increased volume through this factory expansion,” adding, “Based on the current order increase trend, production is expected to increase by at least 40 to 50% next year compared to this year.”

In September, Kookdong invested 13 million USD (approximately 15.2 billion KRW) in local factories in Indonesia to expand production. It invested 5 million USD and 8 million USD respectively in the Batang and Smarang factories, increasing total production by about 30%. The Smarang factory replaced its old machinery with the latest automated equipment to improve productivity and produce high-quality products.

This content was produced with the assistance of AI translation services.