Aoyama Trading to build clothing plant in Indonesia

Japan’s Aoyama Trading will set up a clothing factory in Indonesia by next spring as part of efforts to shift production from China, where labour costs are rising.

This will mark the first plant outside of China operated directly by the group, since Aoyama subcontracts most its production to manufacturers in China and elsewhere. By having its own plant, it aims to get a better grip on production and costs, the company stated.

Suit making subsidiary Fukuryo will set up the Indonesian plant, with plans to produce around 140,000 men’s suits in the first year of operation.

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