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Previously, the Fortuna Group had invested 560 million taka, established a new factory, and imported high-tech machinery.
Fayaz Taher, chief executive officer of Manufacturing and Retail Division of Fortuna, Bangladesh, said that in February, a factory was built in Kunia, Gazipur, with the aim of expanding the company’s advanced production facilities. 6000 pairs of shoe production capacity per day, while the current production capacity is 2500 pairs.
What's more, Chinese buyers are now entering Bangladesh as labor costs in China are rising. In addition, many European buyers are also eyeing the advantages of Bangladesh's zero-tariff export to EU countries. The shoes exported from China are subject to an additional tax of 16.5%.
Due to the anti-dumping rules set by the WTO, countries such as India and China cannot produce high-quality and low-priced leather products. As a result, orders from Japan, France, Germany, Italy and Canada have rapidly flown into Bangladeshi enterprises. Previously, India, Vietnam and China were the largest exporters of leather shoes.
According to Tahill, Fortune Shoes Company will be managed by foreigners. For example, they will employ Chinese experts in charge of the technology and manufacturing departments. They will select American designers to be responsible for the company's creative and design department.
The overall shoe market in Bangladesh is 17 billion taka, of which 45% is exported. About 6 million pairs of leather shoes are exported each year.
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Bangladeshi shoe makers cooperate with China to expand business
Fortuna Bangladesh is preparing to diversify its footwear business by increasing its manufacturing capabilities. A Chinese company will join the company and Bangladeshi Fortuna plans to establish the country’s first shoe mold factory in September.
Author: Asi ( "26361,28023,32418") Cao Hai Hung