Diversifies customer base, adds more than 1.5 million pieces of annual capacity
ROCHESTER, NY / ACCESSWIRE / June 11, 2019 / Jerash Holdings (US), Inc. (NASDAQ: JRSH) (the "Company"), a producer of high quality textile goods for leading global brands, today announced that production continues to accelerate at its fourth manufacturing facility in Al Tajamouat Industrial City, a Qualified Industrial Zone located in Amman, Jordan. Production has scaled steadily since beginning in mid-April as Jerash onboards more than 800,000 pieces of previously announced additional orders from multiple new customers. When at full capacity later this year, the facility is expected to add 1.5 to 1.8 million pieces per year, bringing Jerash's annual capacity to more than 8.0 million pieces, an anticipated increase of up to 27 percent annually.
Sam Choi, the Chief Executive Officer of Jerash and Chairman of the Jerash Board of Directors stated: ''We are excited by the acceleration of initial production at our new facility, which currently has approximately 400 employees on site to produce orders from both new and existing customers. We anticipate that this facility will ultimately employ more than 800 workers and contribute up to 1.8 million pieces in additional annual capacity as we continue to grow Jerash's revenue and diversify our customer base. These new orders are in addition to year-over-year increases in orders for Fiscal 2020 from several of our largest customers, who are seeking increased capacity from Jerash due to our production quality, on time delivery, and duty-free import status to the United States and European Union."
Karl Brenza, Head of US Operations, stated: "Jerash 4 enables us to address new orders that diversify our customer base while meeting additional capacity demands from existing customers who are asking for larger orders every year, often by double-digit percentages. We have executed a rapid production ramp with minimal capital investment needs by acquiring a facility previously contracted to a major US brand and placing it under Jerash management. We are excited to have orders for more than half the plant's initial annual capacity, a strong indication of the growing demand for Jerash's production from new customers and the increasing shift toward garment manufacturing in Jordan instead of higher cost locations such as China."
The new Jerash facilities are an existing garment manufacturing operation adjacent to Jerash's three largest manufacturing centers. Jerash acquired the facility and equipment for approximately $1 million, including acquisition and milestone payments, and assumed the building lease. As part of the acquisition, Jerash coordinated with the Jordanian Ministry of Industry and Trade, Ministry of Labor and Customs Department to assume the existing compliance certificates and workplace certifications, including the facility's Better Work Jordan credentials.
Jerash is a U.S. corporation headquartered in Rochester, New York, with offices in Hong Kong and manufacturing facilities located in a United States Qualifying Industrial Zone (QIZ) in Jordan, which provides for duty-free movement of industrial goods between Jordan and the US, provided the goods meet certain manufacturing and content requirements. Additionally, Jerash is engaged in a number of socially responsible initiatives designed to ensure safe, rewarding employment practices of global textile workers and employs Syrian refugees housed in United Nations camps in Jordan.
About Jerash Holdings (US), Inc.
Jerash Holdings (US), Inc. (Nasdaq: JRSH) is a manufacturer utilized by many well-known brands and retailers, such as Walmart, Costco, Hanes, Columbia, VF Corporation (which owns brands such as The North Face, Timberland, Wrangler, Lee, Jansport, etc.), and Philip-Van Heusen (which owns brands such as Calvin Klein, Tommy Hilfiger, IZOD, Speedo, etc.). Its production facilities are currently made up of four factory units and three warehouses and currently employ approximately 3,500 people. The total annual capacity at its facilities is expected to be approximately 8.0 million pieces by the end of 2019. Additional information is available at http://www.jerashholdings.com.
Forward Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect Jerash's current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.
Contact:
Matt Kreps, Darrow Associates Investor Relations
(214) 597-8200
mkreps@darrowir.com
Richard J. Shaw, Chief Financial Officer
(315) 727-6791
richard.shaw@jerashholdings.com
SOURCE: Jerash Holdings (US), Inc.
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