NEW YORK — Two U.S. textile companies last week separately entered into agreements with Asian textile firms, with the goal of distributing their products and brands to local manufacturers who in turn would market them to Asian consumers.
DuPont Textiles & Interiors reached a strategic alliance with a South Korean polyester manufacturer, and thread producer American & Efird entered into a 50-50 joint venture with a Chinese thread company.
DTI established an alliance with Seoul-based Huvis to develop and produce polyester products and market them under DTI brands on a global basis.
Meanwhile, Huvis, a leading South Korean polyester producer, will gain the right to license and distribute DTI brands, such as Tactel and CoolMax, exclusively in that country. Huvis will license only the rights to DTI’s polyester-based brands since its expertise is in that fiber.
Huvis and DTI will work together to identify the needs of consumers and develop products for the apparel, home and industrial markets accordingly, said Bill Ghitis, DTI’s president of apparel.
“When you define your business as a consumer-driven business model, you are faced with the situation, ‘Are we going to manufacture everything the consumer needs or just sell what we manufacture?’” Ghitis said. “We’re leveraging DTI’s global market reach, marketing savvy and strong consumer brands with Huvis’ low-cost, technologically advanced polyester products.”
Though DuPont has bought polyester from other companies in the past, this marks the first time the Wilmington, Del.-based industrial giant has partnered to develop product.
Huvis has annual revenues of $800 million and has operations in Brazil, China and Germany.
Separately, Charlotte, N.C.-based Ruddick Corp.’s sewing thread division American & Efird formed a joint venture with Ningbo Veken Elite Group Co. Ltd. to manufacture, distribute and sell sewing thread for industrial and consumer markets within China as well as for export markets. This will be done under a new company called Huamei Thread Co. Ltd. and will be located in Ningbo City, near Shanghai.
“The joint venture will leverage the strengths of both companies to expand thread sales in China’s rapidly growing sewn products market,” said Thomas Dickson, Ruddick’s president.
American & Efird currently has production facilities in China, Hong Kong and Malaysia, including a newly built dyeing and finishing plant in China’s Guangdong province.