Yarn sales drive E-land Thanh Cong profits

March 29, 2014 | 15:00

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Korean-backed E-land Thanh Cong Company has high hopes pinned on yarn sales as its sales have increased significantly over the past year.

The Ho Chi Minh City-based textile and garment factory, 45 per cent owned by South Korean conglomerate E-land, reported profits from its yarn business in 2013 against losses in 2012, CEO Lee Eun Hong announced at the company’s annual shareholders meeting on March 29.

The executive added that last year E-land Thanh Cong restructured the US dollar long-term loans for its Tay Ninh spinning project from 8 to 4.3 per cent, reducing outlay.

Given high hopes on continued yarn sales and the apparel business, expected to get a boost from the pending Trans-Pacific Partnership (TPP) agreement, the company is eyeing sales of $133 million for 2014, 11 per cent up on-year and a considerably higher profit increase of 33 per cent.

The yarn business is instrumental in generating this growth, Thanh Cong’s chief strategy officer Tran Nhu Tung told VIR.

He said sales could not go beyond the planned increase, as the company’s facilities were already operating at full capacity. However, E-Land Thanh Cong is mobilising $30 million for another major plant in the Mekong Delta province of Vinh Long.

He said construction would begin very soon and the first stage was set go operational by the end of the year, producing garments. He added that stage two would be knitting and stage three would be pollution-free dyeing. The company estimates 3,500 workers will be needed in total and investment is being sourced from both bank loans and private investors.

The company’s 2013 dividend payout was 10 per cent and for this year is planned at 12 per cent.

By By Tuong Thuy

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