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USD 40 Million Investment: Xinhai Knitting Builds Eco-Friendly Textile Factory in Brebes

by Editor Asiatoday
July 15, 2025
in Business
Reading Time: 2 mins read
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USD 40 Million Investment: Xinhai Knitting Builds Eco-Friendly Textile Factory in Brebes

Groundbreaking textile manufacturing facility PT Xinhai Knitting Indonesia in Brebes, Central Java. Special

ASIATODAY.ID, BREBES — PT Xinhai Knitting Indonesia, backed by global fashion giant H&M, has officially broken ground on its new 8-hectare textile manufacturing facility in Brebes, Central Java. With a total investment of over USD 40 million, the factory is projected to create up to 8,000 jobs once it becomes operational in July 2026.

Production focus: High-quality knitted garments for export markets, Eco-friendly infrastructure: Solar panels and a wastewater treatment system aligned with green industry standards.

Local economic boost: Thousands of new jobs will stimulate growth for supporting SMEs in the Brebes region.

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“This marks more than just the start of construction—it’s the beginning of a long-term partnership that we hope will bring real benefits to investors, the government, and the local community,” said Faisol Riza, Indonesia’s Deputy Minister of Industry, during the groundbreaking ceremony, July 11, 2025.

Driving Competitiveness in the National Textile Sector

Indonesia’s textile and apparel (TPT) industry posted 4.64% growth in Q1 2025, with exports reaching USD 3.38 billion from January to April—an increase of 3.57% year-on-year. This investment from Xinhai Knitting is expected to further elevate Indonesia’s competitiveness in global textile markets.

Ministry of Industry’s 5 Strategic Policies for Sustainable TPT Growth:

1. Adoption of eco-friendly raw materials and market segmentation for recycled textile products

2. Efficiency in water, energy, and chemical use

3. Promotion of circular economy practices

4. Green industry incentives for sustainable businesses

5. Implementation of post-consumer textile recycling pilot projects

Strengthening the Global Supply Chain with H&M

As part of H&M’s global supply chain, the new facility is built to meet high sustainability standards—supporting Indonesia’s vision of developing a resilient, inclusive, and environmentally conscious manufacturing sector.

“We chose Brebes as our new production hub due to Indonesia’s strategic maritime location in ASEAN, abundant skilled labor, and the warm, welcoming spirit of the local community,” said Huang Lu Yu, Director of PT Xinhai Knitting Indonesia.

The Ministry of Industry is actively fostering partnerships among investors, local governments, and vocational training institutions—especially in emerging industrial zones like Brebes—to build a competent and future-ready industrial workforce.

“I’m proud that this facility has shown a firm commitment to renewable energy and green waste management practices. It’s a crucial step toward building a competitive and sustainable textile industry,” added Deputy Minister Faisol Riza. (AT Network)

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Tags: Asia InvestPT Xinhai Knitting Indonesia
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