A denim production move to LA would double costs, Saitex says
Vietnam-headquartered denim mill Saitex has said high tariffs on imports from Vietnam to the US could push it towards expanding production at the facility it set up in Los Angeles in 2021.
Saitex makes jeans for brands including Ralph Lauren, Madewell and Everlane in Vietnam, but chief executive, Sanjeev Bahl, has said he is thinking about moving some of this activity to Los Angeles.
He told the Wall Street Journal that making a pair of jeans in Los Angeles instead of Vietnam would double his costs, owing to the higher labour costs. Another idea, he suggested, was to carry out cut-and-sew operations in Vietnam and laundry and finishing operations in the US.
Mr Bahl said he hoped this might help lower the amount of money Saitex has to pay in tariffs.
Image shows the Saitex site in Los Angeles.
