Establishment of a Joint Corporation with Qingdao Jifa Group Co., Ltd.

Oct. 27. 2005
Marubeni Corporation

Marubeni Corporation is pleased to announce its plans to establish a new underwear manufacturing company in Qingdao City, Shandong Prefecture, China, under a joint venture with Qingdao Jifa Group Co., Ltd. (Jifa Group).

Production capability is expected to be 10 million products/year after an agreement was signed in May.

We have been importing inexpensive and quality knit underwear from Shandong Province mainly to supply discount retailers. As we have a policy on rapidly expanding in this field, we were in need of a more stable production base.

Jifa Group, based in Jimo, Qingdao, is one of China’s largest manufacturers of cut and sewn products and knit underwear. It exports large quantities of cut and sewn products to major SPA (Special Private label Apparel) and apparel retailers in Japan. They have established a high degree of trust with Japanese clients in terms of both competitiveness and quality.

Marubeni and Jifa Group have considered expanding their future overall relationship in trade and business. This joint venture is the first initiative in this expansion, and we are continually strengthening the affiliation. More details on the established joint corporation will be determined by the end of the year.

[Jifa Group – Corporate Profile]

Name                    : Qingdao Jifa Group Co.,Ltd

Address                 : 1 Jifa Road, Jimo, Qingdao China

Business Activities  : Manufacture and sales of knit fabrics/products and wigs

Established            : 1997

Main stockholders  : Qingdao Jifa Group Holding Co., Ltd, Mr./Ms Chen (general manager),

Mr./Ms Song (general manager) and others

Capital                   : 43 million RMB

Sales                     : 725 million RMB

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