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Chinese footwear company's Indonesia factory achieves production profitability

中资鞋企印尼工厂实现投产盈利

Huali Group announced that its first plant in Indonesia, Sekawa Plant, reached its internal assessment target and achieved profitability in the third quarter of 2025, marking a key step in its capacity expansion strategy in Indonesia and validating its cross-regional operations and localized management capabilities.Indonesia's footwear industry is mature ecological, and the company's real controller has local factory operation experience, the core management team contains people with Indonesian experience, rapid adaptation to the local environment, to avoid the risk of integration of new production areas, to lay the foundation for the profitability of production.

Compared to Vietnam, Indonesia has abundant labor supply and lower labor cost (Vietnam's annual rise is about 8%), supporting long-term scale expansion and cost optimization. The company has adjusted its management, optimized training, adapted to local habits, improved efficiency, and exceeded expectations in operation and ramp-up performance. The first phase of Sechuan factory has been put into production, the future of the second and third phase will reach a total capacity of 50-60 million pairs / year, becoming an important pillar of production capacity.

Medium and long-term planning, the next 3-5 years Indonesia as the "main battlefield" expansion of production capacity, Vietnam stable scale, excellent efficiency, the formation of "stable capacity in Vietnam, Indonesia to expand the incremental" dual-producing areas of synergy. This layout to help the company through low-cost repair gross margin, diversify the rising costs in Vietnam and geographic risk, and Indonesia's production capacity is flexible to adapt to fluctuations in orders, improve resilience. Management said it will continue to deepen localization, promote follow-up construction, and review the efficiency every month to ensure the steady release of production capacity and provide stable competitive support for the global market.

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