Coats, a global industrial thread manufacturer, has unveiled the latest expansion to its global operations with the opening of a new development in Vietnam. The extension to its site in Hung Yen, near Hanoi, was formally opened by Rajiv Sharma, group chief executive, at a ceremony on 21 September. The event was attended by representatives from the long-standing joint venture in Vietnam with Phong Phu Corporation as well as local government officials, customers, suppliers and members of the Coats Group Executive Team.
Yarn manufacturing from Coats
The additional capacity makes the Hung Yen site one of Coats’ largest manufacturing units. It will enable dyeing and finishing operations to be increased by over 40% and also provides additional warehouse space. The site, which is already a leader in many of the internal manufacturing performance metrics of Coats, demonstrates the company’s recognition of the growing customer base in the north of Vietnam, according to the company.
Sharma says: “This is an impressive development that will benefit all our key stakeholders. Expanding our operations positions us even more strongly to meet the future needs of our customers in Vietnam, and beyond, as we work together to adapt and change in response to rapidly changing market demands.”
The geographic location of Vietnam is an important part of Coats’ global footprint. It is a major hub in South East Asia for worldwide apparel sourcing. As Asia moves from being primarily a manufacturing base to also being one of the world’s largest consumer markets, including an increasing demand for high-end garments, the manufacturing output from its factories is increasing.
A Coats employee in Vietnam
Digital is a key pillar of Coats’ strategy and Vietnam was an early adopter of Coats eComm, the industry leading customer tool to make thread ordering easier and faster. It manufactures many of Coats’ newest and most innovative products including EcoVerde, the first range of premium threads to be made from 100% recycled post-consumer recycled core spun thread. It also produces flagship thread ranges such as Epic as well as performance materials yarns.
The opening of the new building comes shortly after the recent announcement of Coats being named one of the best companies to work for in Vietnam by HR Asia, the leading regional HR publication, adds the company. The company has also been included in the best 80 companies to work for in Brazil by Great Place to Work (GPTW), a global research, consulting, and training consultancy. The announcement was made at an awards ceremony held at Sao Paulo, Brazil, in August 2018.
Coats first opened a site in Hanoi in 1992 and relocated to the current Hung Yen location in 2006. It also has a manufacturing facility in Ho Chi Minh City.
