Morgan, a women's ready-to-wear brand, has set up its first manufacturing company in China.

M.D.T. (Nanjing) Garment Corporation is jointly invested in by Paris-based Morgan, which holds 49 per cent of the shares, and Hong Kong-based Hembly International Holding Limited, which has the remaining 51 per cent.

"The joint venture will deliver Morgan apparel to the global marketplace with guaranteed quality at a competitive price," said Georges Gausseran, chief executive officer of Morgan.

He predicted that the Nanjing-based corporation would be manufacturing 50 per cent of all Morgan products within three years. And within five years, Morgan will have built 200 boutiques in China, mainly in department stores and malls.

Presently, there are more than 1,000 Morgan stores around the world, 34 in the Chinese mainland, 10 in Hong Kong and 27 in Taiwan.

According to Gausseran, the Nanjing corporation will not only be a manufacturing base but also a supply centre for the company

Its annual production capacity is set to reach between 700,000 to 1,000,000 individual knitted items, trousers and skirts.

The factory will make to order, and all finished products will be delivered to Morgan distributors after inspection.

Gausseran said that the vast majority of apparel made at the plant will be shipped overseas, mostly to Europe. "We will consider designing clothes for the Chinese market, but this may only take up 10 per cent of production, based on market needs," he said.

Billy Yue, chairman of Hembly, believes his firm has an edge in the sector, which was a factor in the co-operation with Morgan.

For example, Hembly has had dealings with European clients previously and has complied with European business practices.

The firm has developed unique and advanced fabric testing and development techniques and established a wide sourcing network across Asia, especially China, according to Yue.

Founded in 1947, Morgan, a leading global brand, makes clothes for women aged 16 to 35, with collections that are contemporary and fashionable.

Source: China Daily