Youngor to spend 3bn Yuan to streamline garment business

With an aim to streamline its garment business and marketing channels through 2013, the Ningbo-based Youngor Group proposes to invest three billion Yuan.

The power scarcity in Ningbo has compelled Youngor Group to look forward to shift its Ningbo based garment producing unit to Shengzhou, a county-level city located to the south of Hangzhou.

The Group accquired an American firm Kellwood Co’s subsidiary; Xin Ma Apparel International in 2007, and is now even planning to shift this firm’s original manufacturing units to Chongqing and Vietnam.

Further, the Youngor Group also intends to invest a part of the allocated sum to develop its sales network and grow new brand line-ups under the GY, Mayor & Youngor, Hart Schaffner Marx and CEO labels.

Besides, the Group also revealed its intentions to raise 1.8 billion Yuan through issue of one-year short-term bills. 200 million Yuan of this would be allocated to enhance the firm’s working capital, while the rest 1.6 billion Yuan would be utilised to repay bank loans.