MWE Holdings Bhd, a wholly-owned subsidiary United Sweethearts Garment Sdn Bhd (USG) is planning to expand its textile operations which includes setting up a new plant in Vietnam.

Group managing director for MWE, Tang Chong Chin said that the company would focus on its textile division, the core business of MWE, to drive growth for which the company will be investing US$7million (RM29.3 million). Bulk of the investment would be for the new manufacturing facility in Vietnam.

The construction work for the plant located on a one hectare site will start soon. About US$3.5million will be for the new facility and another US$2.5mil for new machinery to boost output, Tang said.

The new plant is expected to begin operations in mid-2016 and will increase the group’s production capacity by 50 percent. The expansion will contribute an additional US$40million revenue to the group.

The remaining US$1mil would used to upgrade its Nibong Tebal plant, which had 58 production lines.

The textile division of MWE has established itself as a reliable and reputable manufacturer of garments and enjoys continual orders from its long term overseas customers such as Nike, Lacoste, Oshkosh and Izod.