South Korea-based technical outerwear manufacturer Kido Industrial announced a total investment of more than $36 million in new factories in Dhaka, Bangladesh. Of this amount, the company will invest $31.17 million to establish a new company, Kido Dhaka Company Co, Ltd. In addition, Kido recently acquired an existing garment factory directly adjacent to another property in the Adamjee Export Processing Zone (EPZ) that Kido also purchased and will use as the building site for a new factory, Kido Dhaka. Companies from 14 countries currently operate in the Adamjee EPZ, including from the U.S., Japan, the U.K., South Korea, China, Taiwan, Germany, Spain and India.
Kido plans to initially spend $5 million to renovate the already-acquired garment factory, gradually taking the investment up to $14 million in stages. Commenting on Kido’s acquisition of the company, Joseph Ahn, managing director of Kido Dhaka, said, “We will rearrange the safety of the building infrastructure to the same level as in our other factories. And we will also look at sustainability and the environmental footprint of the factories.”
The existing factory will be used to initially train around 2,000 to 3,000 new workers on the machines before creating significantly more new jobs once the new factory is completed, to eventually produce around 2 million units of technical outerwear annually with about 16,000 employees in both factories, particularly seam-sealed and insulated jackets for outdoor, sports, work and motorcycle apparel. Kido’s outdoor customers include Bergans, Black Yak, Jack Wolfskin, Schöffel and Spyder, among others.
“The favorable labor cost combined with the massive workforce Bangladesh can offer attracted Kido to make the investment decision for Bangladesh,“ Ahn commented. “We have similar facilities in Vietnam, Myanmar and Indonesia, and Kido Dhaka will be an important addition to our existing factories. Our customers must be able to rely on us making the necessary steps to secure competitiveness but also flexibility and predictability. Goods produced in the Bangladesh plant will be exported to leading brands in Europe, North America, Japan and Korea.”
In addition to its headquarters in Seoul, South Korea, Kido already has a network of factories in Vietnam, Myanmar and Indonesia with an annual turnover of approximately $300 million. All factories are Gore-Tex certified.