Japan’s Toray Industries will acquire a stake in Hong Kong’s Pacific Textiles. This will enable Toray to pursue its global strategic expansion and synergy effects through supply chain integration and collaboration.

By leveraging Toray’s strengths in raw materials and Pacific Textiles’ value-added knitting services, both groups are positioned to innovate and improve products to their end clients as well as penetrating into new geographies and adjacent segments.

Engaged in the manufacturing and trading of textile products since 1997, Pacific Textiles is a leading manufacturer of customised knitted fabrics with a focus on complex, value-added fabrics. It has a high profit yield thanks to its enhanced operational efficiency and effective cost control measures.

Its principal manufacturing facility located in China is well-equipped with advanced production facilities, including a scalable water treatment facility and cogeneration power plant. In addition, it also has a manufacturing plant in Vietnam.

Pacific Textiles and Toray have been developing new fabrics together, and Pacific has been indirectly supplying fabrics to Toray. Through this strategic investment, Toray expects to strengthen its business relationship with Pacific Textiles and further align the interests of the two groups.

Toray has signed a share purchase agreement today to acquire 28.03 per cent stake in Pacific Textiles from Far East Asia. Closing is expected to occur mid-July 2017.