Everest Textile Co, vertically integrated textile manufacturers have been seeking overseas sites for its new factories, as the fabric manufacturing process is quite labor intensive has scheduled to start operations at its two new plants in Ethiopia and the US in the first half of this year.

The plant in Ethiopia is to manufacture garments for the company’s brand name customers from Europe, while the US facility is to supply knitted fabrics and garments to customers in the US, the firm said.

The two new factories are expected to increase the sales contribution from garments, which currently generate less than 2 percent of the company’s total sales.

Revenue from woven and knitted fabrics accounts for more than 80 percent of the company’s total sales, while textured yarns generate nearly 10 percent, according to company data.

The official, who declined to be named, said that the company plans to build another plant in Haiti because of lower labor costs.

Currently, Everest operates three plants in Taiwan, China and Thailand.

Everest’s local peers, including Lealea Enterprise Co and Eclat Textile Co, also plan to accelerate overseas capacity expansion plans this year.

Lealea, which mainly produces textured polyester yarn, has approved a plan to invest as much as US$50 million in its first overseas factory in Indonesia.

The new plant is scheduled to begin operations in the first half of this year, with a target capacity of 4 million yards of polyester yarn per year, Lealea spokesman Chen Han-ching said.

The plant is to distribute about half of its products to customers in Indonesia, a nation of 255 million people. Lealea is also considering building another plant in Vietnam because of lower tariffs on exports to the EU, Chen added.

While, Eclat plans to expand production capacity in Vietnam after dissolving its wholly owned clothing plants in China last month.

Two new plants in Vietnam are scheduled to begin operations in the first and third quarters of this year respectively and expected to manufacture about 950,000 articles of clothing per month, boosting Eclat’s capacity by 20 percent annually.

Everest has also planned to purchase 88 new circular knitting machines, with 35 of them to be used for developing and producing body-mapping fabrics for functional clothing.

Everest, whose customers include North Face Inc, Columbia Sportswear Co, Decathlon Group, is highly regarded in the industry for its adherence to sustainable production methods.