Low Tariffs: Why We Built a New Umbrella factory Base in Cambodia
Background: Navigating Global Trade Uncertainties
In today’s rapidly changing global economy, businesses face numerous challenges including trade wars, shifting tariffs, and supply chain disruptions. These uncertainties affect manufacturing costs, delivery timelines, and market competitiveness. To maintain resilience and continue delivering quality products, companies must strategically adjust their operations and explore stable, cost-effective manufacturing locations.
We have been a life so far as the problems with decades of experience in foreign trade, participation in foreign trade over years, experienced trade war problems. Even before the tariff even before the tariff, before the question of burning during the Trump administration, we had already estimated the possibility of a trade war. By 2024, to prepare low tariff umbrella factory, we had already made our brain strategically, to start building a new umbrella factory in Cambodia. The factory will start production soon on June 2025.
Why Choose Cambodia for Our New Factory
Lower Tariff - Cambodia enjoys the term preferably tariff from the majority of the large trade markets in the world, and this will help us reduce the cost burden for our customers.
Low labor costs - Low labor costs allow us to produce good quality products, which we stand out without extra production costs. There are many young people working in umbrella factories here. Using our transferred management personnel, we can produce good quality umbrellas.
Establishment of local supply chains - Establishment of Cambodia, in the time period, a fairly mature support industry supply chain, from material suppliers to logistics companies, to produce a sound foundation.
Near China - Geographical proximity to China means special materials, cheap transport and easy access to better supply chain management.
Through the use of these forces, we can maintain the quality of the necessary work for our customers and offer more competitive prices. At a time when international trade is so uncertain, finding a smart alternative is no longer an option - this is a requirement.
Keeping Cambodia as a low tariff base for umbrella production is now an important component of our strategy. This allows us to continue the supply.
Strategic Importance of the Cambodia Factory for Our Business
Opening a factory in Cambodia is a major step toward diversifying our manufacturing base and mitigating risks associated with geopolitical tensions. It enables us to secure supply chains, reduce dependency on any single region, and enhance overall operational flexibility. This strategic move strengthens our ability to meet customer expectations consistently while adapting to global market changes.
Future Outlook: Continuous Supply Chain Optimization
We are committed to ongoing investment in our Cambodia facility to adopt advanced manufacturing technologies and sustainability practices. By continuously optimizing processes, improving workforce skills, and expanding partnerships, we aim to boost efficiency and reduce environmental impact, ensuring long-term growth and resilience in a complex global market.
Latest Update: Cambodia Factory Progress (June)
As of June, our Cambodia factory is actively undergoing renovations. The construction and setup are progressing smoothly, with the facility being outfitted with the necessary equipment and infrastructure to support production. Preparations for trial production are underway, marking an exciting milestone toward full operational status.
We will be adding photos soon to give a closer look at the renovation progress and the team’s efforts on-site.
Factory Equipment Delivery
June 05, 2025
Pannel cutting testing
June 9, 2025
The Large Cutting Machine Testing
June 10, 2025
Sewing Production Line Assembly
June 10, 2025
Conclusion: Finding Stability Amid Uncertainty
In a world of growing trade uncertainties, establishing our factory in Cambodia represents a forward-looking strategy to secure supply chains and deliver value to customers. Leveraging Cambodia’s advantages in tariffs, labor, supply chain, and location allows us to build a resilient business foundation. We are confident that this strategic choice will enable us to continue offering high-quality products competitively and sustainably for years to come.
