The global household-upholstery textile market is expected to grow at double-digit rates for the next few years and has huge potential for further development, according to the China Textile Institute, a unit of the Economic Ministry's (MOEA) Industrial Technology Information Services (IT IS) office.

To take advantage of the lucrative opportunities that are expected to flow from this development, Taiwan's fabric manufacturers are aggressively expanding their production capacity and moving into the development of downstream products. For instance, Everest Textile Co., an affiliate of the Far East Textile Group, is boosting the household-upholstery fabric capacity at its plant in Thailand; Li Peng Enterprise Co., a subsidiary of the Lealea Group, recently inaugurated the production of household-upholstery textile products such as window blinds; and Honmyue Enterprise Co. is formulating plans to build a fourth plant in Taiwan to boost its production of household-upholstery textiles.



Everest has invested NT$200 million (US$5.88 million at NT$34:US$1) over the past two years to install two sets of dyeing and finishing equipment for staple yarns for such household textiles as suede. The company is now capable of rolling out 400,000 yards of suede per month; it expects sales of this material to grow rapidly this year, and plans to further increase the ratio of suede and other household upholstery fabrics in its total output in the near future.

In addition, Everest recently retooled its Thailand No. 1 plant for the production of functional fabrics for exercise gear at a monthly output of 1.5 million yards. Originally, the plant turned out two million yards of textured yarn for trousers a month.

Going Vertical

Li Peng, which specializes in the production of nylon and polyester fabrics, has boosted its vertical integration by going into downstream garment production. To facilitate this expansion of production, it recently set up a new department to take charge of the production of garment and household-upholstery textile products. To strengthen its supply capability, the company has also formed a strategic alliance with another company that concentrates on the production of garments.

Honmyue is also chasing opportunities in the area of household-upholstery textile products, and is planning to procure land for the establishment of a new plant in Taiwan by the end of this year. The new facility will focus on the production of profitable specialty textile products such as suede, fine nylon fabrics, medical fabrics, and household-upholstery fabrics. The plant will house more than 700 machines for the production of textured yarns.

Not all observers are happy with the trend toward large increases in capacity. Such vigorous expansion, cautions Lin Wen-chung, chairman of the Taiwan Silk Filament Weaving Industrial Association, will undermine the healthy development of the island's textile industry.

"Domestic textile manufacturers suffered a reduction in orders because of the outbreak of the severe acute respiratory syndrome (SARS) and the war in Iraq in the first half of this year, but they still believe that functional fabrics for household and industrial use will be among the most promising of products over the next few years," Lin explains.

Instead of boosting production capacity, however, Lin suggests that manufacturers heighten the added value and competitiveness of their high-tech textile products. To do this, he says, they should strengthen their research and development efforts. In addition, they should "step up the ratio of their production of upholstery fabrics for household and industrial use."

The chairman notes that some domestic companies have already begun turning out functional products, including wrinkle-free cotton textiles, far-infrared textiles, waterproof textiles, anti-bacterial textiles for home and medical use, moisture-absorbing and quick-drying textiles, and anti-electromagnetic wave textiles, in a bid to enhance profitability.

The production ratios for apparel, household, and industrial fabrics in Taiwan at the present time are 80%, 10%, and 10%. Lin believes that the figures should be adjusted quickly to 60%, 20%, and 20%.