Pan Brothers is seeking local partners to jointly build and operate the company's textile factories in Vietnam and Cambodia.— Illustrative Image/ Photo Vu Sinh

JAKARTA — Publicly listed textile manufacturer PT Pan Brothers is seeking local partners to jointly build and operate the company's textile factories in Vietnam and Cambodia, the company's senior executive has said.

Pan Brothers' administrative director Fitri Ratnasari Hartono said in Jakarta on Monday that the company planned to build factories in the two countries as part of its global expansion.

The company plans to set up factories in those two countries to satisfy demand from its buyers, who wish to acquire Pan's textiles from not just one country but from multiple channels.

"Equity wise, we haven't found a partner but Pan runs a representative office in Vietnam in order to get things started," she said at the sidelines of the 2015 Investor Summit and Capital Market Expo on Monday.

She added that Pan would focus on Vietnam, Cambodia and Bangladesh in its expansion plans for the near future. The plan to expand into these countries was announced in 2014 but has not yet been realized because the company has yet to find the right local partners to run the factories.

Meanwhile, the company said that the planned construction of three additional production plants in Central Java would likely take place in the second quarter of 2016. The company will spend up to US$25.7 million on the three new factories, which are expected to commerce commercial operations in 2017.

Earlier in August, Pan officially opened four "Eco Smart Garment" factories in Boyolali, Central Java, and in Bandung, West Java. These four constituted the first batch of seven planned factories. After all seven factories have been completed, Pan's production capacity would likely increase from 75 million pieces a year to 96 million pieces a year.

Pan Brothers' total revenues in the first nine months of 2015 reached $316 million, which represented a 25.1 percent increase from the same period of 2014. Fitri said that the increase in revenues was due to the four recently operational factories that Pan opened in August.

Pan's financial director Lilik Setijo said that the sharp depreciation of rupiah against the US dollar did not really affect the company's financial performance because the sales were priced in US dollars.

Pan Brothers' largest market remained Asia, which accounted for 48.76 percent of its exports in the first nine months of 2015, while Europe and the United States accounted for 20.24 percent and 28.89 percent, respectively. Fitri said that the Asian market's strength was due to the ever increasing demand for consumer goods in the region. The company exports about 90 percent of its total production.

Fitri is confident that the company will be able to achieve its revenue target of $400 million by the end of the year.

Pan Brothers — which manufactures brands like Nike, North Face, Lacoste and Emporio Armani — exports 99 percent of its sales. — The Jakarta Post/ANN