Shandong Daiyin Textile and Garment Group (D&Y Group) is setting up a textile plant in Sedenak Industrial Park, Kulaijaya district in the state of Johor in peninsular Malaysia, through its subsidiary D&Y Textile (Malaysia) Sdn Bhd.

D&Y Group will invest RM 640 million in setting up the new plant, which would be its first in the Asean region, Group chairman Zhao Huan Chen said after signing an agreement with United Overseas Bank (Malaysia) Bhd (UOB Malaysia) for credit financing services, settlement services, and a range of comprehensive financial services.

The new textile facility will house 200,000 spindles and bring advanced textile technologies into Malaysia. All products manufactured at the Malaysian facility would be meant for exports, which are estimated to fetch about US$ 350 million in annual foreign exchange for Malaysia.

Ranked among the top 20 textile enterprises in China, D&Y Group employees over 10,000 people and annually produces 80,000 tons of cotton yarn, 20 million metres of denim, five million metres of wool and five million pieces of clothing.

In 2013, the company earned sales revenue of 3 billion yuan, profits of 260 million yuan and recorded total export-import volume of $200 million.