To cope with the global economic downturn, Taiwan’s major textile manufacturers, including Makalot Industrial Co., Tainan Enterprises Co., and Nien Hsing Textile Co., have recently downsized or decided to cut back overseas operations.

Makalot has seen the first sharp fall in profits this year. In the first 11 months, the company raked in revenues of NT$12.4 billion (US$387.5 million at US$1 = NT$32) for an annual drop of 11%, with pretax profits plunging by 63% to NT$550 million (US$17.19 million), and earnings per share (EPS) of NT$3.64 (US$0.114), the lowest on record.

As a result, the company is planning to close four overseas plants, of which one is in Cambodia, one in the Philippines and two in China, which will lay off 1,500 overseas employees.

Moreover, the company also intends to reduce sales outlets to cut management staff in both Shanghai and Taiwan by 10%-15%.

Likewise, Tainan Enterprises has already suspended its Jordanian operations this year and Nien Hsing has closed five garment plants in Nicaragua over the past couple years. Nien Hsing has moved most of its overseas operations to Vietnam to lower manufacturing cost.

Both Tainan and Nien Hsing believed that the global economic recession has caused plummeting market demand and the sluggish business might continue at least to the second quarter of next year.