Taiwanese denim fabric and jeans manufacturer, Nien Hsing Textile, is undergoing a strategic downsizing of operations in response to volatile cotton prices, diminished demand, and labor shortages. The company has decided to shut its Houlong Township factory upon completion of pending orders. This facility, encompassing yarn spinning, dyeing, weaving, and finishing departments, currently operates at 76.4 per cent of its 1.4 million yards per month capacity, producing an average of 1.07 million yards of denim fabric monthly. Unfortunately, the closure will result in the layoff of 600-700 employees.
Nien Hsing Textile, a key player in the industry, caters to renowned brands such as Levi’s, Gap, Old Navy, Madewell, American Eagle, The Children’s Place, and Macy’s. With global reach, the company operates facilities in Mexico, Vietnam, and Lesotho.
Experiencing a notable decline of approximately 30 per cent in consolidated net revenue from January through November 2023 compared to the same period last year, the Houlong factory reported a pre-tax loss of $6.98 million in the first 10 months of this year. The closure is viewed as a strategic move by Nien Hsing to enhance overall operations and expand shareholder equity.
Despite the challenges, Nien Hsing Textile Co showcased its Spring/Summer 2025 collection at Kingpins Amsterdam in October, featuring Y2K-inspired metallic coatings, aged washes, cracked surfaces, and unique textile fabrics.
