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INTEGRITY QUALITY SERVICE - Saha-Union Co., Ltd

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24<br />

SAHA-UNION<br />

SAHA-UNION PUBLIC COMPANY LIMITED<br />

TEXTILE BUSINESS<br />

TYPES OF PRODUCTS OR <strong>SERVICE</strong>S<br />

<strong>Co</strong>mpanies in the textile group are engaged in the production<br />

of 4 product categories:<br />

1. Garment accessories such as zippers, threads, and<br />

buttons.<br />

2. Fabric textile production from the process of yarn<br />

spinning to fabric weaving. The products are made<br />

of 100% cotton, cotton blended with polyester and/or<br />

synthetic fabrics with special qualifications for making<br />

work wear and fabrics used in other industries.<br />

3. Garment: fashion apparel and work wear.<br />

4. Clean room garments<br />

SUPPLY OF MATERIALS FOR PRODUCTION<br />

OR <strong>SERVICE</strong><br />

The core materials are cotton, mostly imported for the<br />

production process, and synthetic fabric, bought from<br />

domestic suppliers and imported. The production of garments<br />

and clean room garments has fabric and sewing supplies as<br />

core production factors. Fabrics with special qualifications<br />

are partly imported and partly supplied domestically.<br />

PERFORMANCE IN 2011<br />

The production in this group emphasized on technical work<br />

wear as appropriate with the capability of the production<br />

process. In 2011, sales volume increased from the previous<br />

year, due to the price increased in line with the rising costs<br />

of raw materials.<br />

Fabrics’ sales value also increased from the previous year.<br />

63% of all sales was exported, 97.5% of which to EU countries<br />

and the rest to Japan. Domestic sales contributed to 37%<br />

of all sales.<br />

Garment’s sales volume decreased from the previous year,<br />

but sales value increased. 90% of all sales was exported,<br />

88.5% of which to Europe. From such figure, it was inevitable<br />

that the EU economic problem significantly brought down the<br />

orders of textile industry at the end of last year.<br />

As for the market in the first half of the year, since the textile<br />

price continuously increased as from 2010, buyers increased<br />

more orders as they feared of the increasing price. On the<br />

second half, the textile price fell because the economic<br />

recession hit Europe and buyers slowed down their orders<br />

as they waited for the price to fall, resulting in the smaller<br />

demand in the market and severing affecting the competition<br />

in terms of price and delivery period.<br />

In 2011, the fluctuation of raw material prices especially<br />

of cotton was the main problem because cotton was an<br />

imported material; thus, there was limitation of material<br />

supply in terms of quantity and delivery period, resulting in<br />

the loss of opportunity unless it was in sync with the prompt<br />

adjustment of price.

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