Business
Jerash Holdings Signs Definitive Agreement to Acquire Manufacturing Factory; Expected to Increase Annual Production Capacity by about 20%
FAIRFIELD, NJ / ACCESSWIRE / June 29, 2021 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom,
About this update from Jerash Holdings (us), Inc.
[{"type":"text","content":"FAIRFIELD, NJ / ACCESSWIRE / June 29, 2021 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the \"Company\" or \"Jerash\"), which manufactures and exports custom, ready-made, sports and outerwear for leading global brands, today announced its wholly owned subsidiary Jerash Garments and Fashions Manufacturing Co., Ltd. had signed a definitive agreement with MK Garments MFG Co. Jordan to acquire Mustafa and Kamal Ashraf Trading Company (Jordan) for the Manufacture of Ready-Made Clothes LLC. (\"MK Garments\"), the operator of a 71,000 square-foot apparel manufacturing facility in Amman, Jordan, for approximately $2.8 million in cash. The transaction is anticipated to close in August 2021.The new facility is expected to enable Jerash to produce approximately 2.5 to 3.5 million additional garments per year, adding about 20 percent to Jerash's current annual capacity.Under the terms of the agreement, Jerash will assume the manufacturing licenses and existing physical operations of MK Garments, including all machinery equipment, 500 employees and a dormitory. Upon completion of the transaction, this facility will immediately cease production for MK Garments' customers, and in August, Jerash will start producing CM (cut and make) orders from Jerash's customers and subsequently produce knitted jackets and other more complex products from this facility.\"We expect the facility to immediately add needed capacity and give us the ability to scale up to satisfy increasing demand from new and existing customers,\" said Sam Choi, Chairman and Chief Executive Officer. \"All of our existing factories in Jordan are fully booked through January 2022, and customers already are placing orders that are expected to fully book the new factory from MK Garments through January 2022 as well. Our value proposition as a competitive supplier to leading, global premium brands is driving profitable growth for Jerash, as more companies seek to take advantage of Jordan's economic advantages, along with Jerash's proven ability to produce top-quality products.\"Our previously announced construction plans are progressing, and we will explore additional opportunities that are expected to allow us to continue our growth,\" Choi added.About Jerash Holdings (US), Inc.Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sports and outerwear for leading glob...