GEORGE TOWN: Main Market-listed Caely Holdings Bhd plans to set up a joint venture (JV) in Indonesia this year.

       The move is to increase its production capacity to cater to the growing global demand for lingerie, according to a report by Bernama.

       Chief executive officer Gok Ching Hee told the national news agency that the group is in the midst of finalising the terms and conditions of the agreement with a potential JV partner.

       “Our JV partner will invest in the plant, which will likely be ready in May or June this year. We target to sign the JV agreement by the end of March,” he told Bernama.

       Gok said Caely’s current main export destinations for its original equipment manufacturer undergarment products are Germany, the United States and Canada.

       However, it has recently been getting enquiries from companies in Turkey, France and Australia.

       He said the enquiries would double Caely’s existing production capacity, which led to its decision to expand its operation.

       The plant in Indonesia would increase Caely’s capacity by three-fold. The group now has a factory in Teluk Intan, Perak.

       “We believe that the recent large amount of orders we are getting is due to companies shifting away from sourcing their products in China and we are benefitting from the trade war in the international market.

       “Judging by the increasing momentum of orders we are getting, we are confident that we will use up the capacity of the Indonesian plant,” he said.

       Caely, which was established in 1986 to produce women’s intimate apparels, had allocated RM5mil for working capital last year to diversify its products including for the production of fabric face mask.

       Gok said the group would also utilise part of this investment to produce active wear, nightwear and children’s wear soon.