In 2022, shoe giants will make big bets

Chache Computerized Sewing Machine mainly partner-- Footwear giant Baocheng International Group decided to restart the production expansion of overseas factories in 2022, and will re-enter Indonesia! They will purchase more automatic sewing machines then.

Bao Cheng said that due to the epidemic situation, the production capacity of the Vietnam factory of the Group dropped sharply to 37% in the first three quarters of this year, but the production capacity of the Indonesia factory of the Group increased sharply to 47% against the trend, temporarily staying in the largest shoe-making base of the Group for the first time. Without major interference, the focus of the Group's production expansion plan in 2022 will be placed in Southeast Asia, among which Indonesia's production expansion rate should be the largest. Baocheng pointed out that the group's shoemaking capacity has adopted a global layout. In view of the Sino-US trade war and the epidemic situation in recent years, it will continue to strengthen the operation efficiency and manufacturing capacity of various production bases, and strive to provide fast and flexible manufacturing services to meet the brand customers' more flexible regional purchasing strategies and order demands in a timely manner to cope with the rapidly changing market environment. Baocheng revealed that the group's shoemaking business was co-ordinated by Yue Yuen Industrial, a Hong Kong listed company. Another channel business of the group is handled by Baosheng International, a Hong Kong listed company of Yue Yuen. Yue Yuen has been expanding its production in Southeast Asia, and its Indonesia plant has continuously increased its annual production capacity for five consecutive years, from 36% in 2017, 37% in 2018, 39% in 2019 and 2020. In the first three quarters of this year, the production capacity increased sharply to 47%, surpassing 37% in Vietnam for the first time, and temporarily becoming the largest production base of the Group. According to Bao Cheng, in the third quarter of this year, due to the local epidemic situation, the Vietnamese factory was forced to temporarily stop work, which reduced the production capacity in the first three quarters of this year from 46% in the same period of last year to 37%. With the transfer of orders and the expansion of Indonesian production lines, the production capacity of the Indonesian factory in the first three quarters of this year rose to 47%, instead overtaking that of the Vietnamese factory. Bao Cheng emphasized that in recent years, the Group has continuously focused on the growth of quality operations, devoted itself to the improvement of production efficiency and profitability, and timely increased manufacturing capacity. Affected by the epidemic last year, corresponding measures were taken to maintain operational resilience, further adjust the capacity allocation of footwear manufacturing business, and temporarily reduce the manufacturing capacity of Southeast Asia. #Pattern Sewing Machine

Total shipments in the first half of 2021 increased compared with the same period of last year; In the second half of 2021, due to the severe epidemic situation in Southeast Asia, some capacity expansion progress was affected. Bao said that if there is no significant change in the epidemic situation, the company's brand customer orders will remain stable and the industrial prospects will remain positive, and the line will continue to expand in 2022; At the same time, the manufacturing capacity can be improved by means of automation, manpower supplement or overtime work. Shoe Sewing Machine

Baocheng believes that at present, the Group will continue to invest in Indonesia, and the local labor force is relatively abundant, so it has great confidence in the development of the Indonesian factory and will continue to expand the factory.For the shoe sewing machine, they plan to import more from China. If there is no major interference, the focus of the Group's production expansion plan in 2022 will be in Southeast Asia, among which the expansion rate in Indonesia should be the largest.

Wish there's more close cooperation of the Computerized sewing machine with Chache