Designer Textiles expands

By ELLEN READ

Designer Textiles is joining New Zealand businesses expanding their production into China.

It has bought Auckland fashion company Michele Ann - complete with its factory in Shengzheng - for an undisclosed sum.

The new acquisition will run as a standalone operation, although some of Designer Textile's existing merino production in New Zealand will be expanded to use the China factory.

"Particularly with the merino that we're exporting into the US and Europe, we want to make sure we've got good design and supply capability to export," said Designer Textiles' general manager, Mark Bilton.

Production for major European and US customers will move to the Chinese factory, although the company will still manufacture here.

"It's all about growth. We're expanding not relocating," said Bilton.

There were no other deals on the horizon but the company was open to opportunities - especially in the homeware and apparel area.

"We want to grow by acquisition and organically."

Michele Ann designs women's garments locally and produces them in China for brand owners and retailers in New Zealand and Australia.

"They're a good link between a design house and a supply chain. They've got a quick supply chain, they can deliver quickly out of China and also have a strong design element," Bilton said.

Michele Ann was a profitable business and would contribute to the Designer Textile bottom line in the current financial year.