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Translated by
Barbara Santamaria
Published
Jul 3, 2017
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Toray buys stake in Pacific Textiles, eyes international expansion

Translated by
Barbara Santamaria
Published
Jul 3, 2017

Japanese textiles manufacturer Toray has strengthened its ties with Pacific Textiles, a long-time partner and indirect supplier of knitted fabrics, after signing a deal to acquire a 28% stake in the business.



The move will help Toray realise its expansion plans and create synergies through supply chain integration and collaboration.

Pacific Textiles is a Chinese manufacturer of customised knitted fabrics, founded in 1997. The company focuses on complex, high quality fabrics, and has a high profit yield thanks to its enhanced operational efficiency and effective cost control measures. It has a manufacturing facility in China and a plant in Vietnam.

Toray acquired the stake in Pacific Textiles from Far East Asia Limited, a company solely owned by a director of Pacific Textiles and his wife, for a total of HK$4.05 billion ($519 million).

Toray and Pacific Textiles have been developing new fabrics together for a long time and the companies said the strategic investment will further align their interests. “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,” said the companies in a release.

The deal is expected to close mid-July.

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