Jerash Forms New JV Entity To Produce Apparel In Jordan
Jerash Holdings (US), Inc. (NASDAQ: JRSH) and Busana Apparel Group signed an agreement to form a joint venture company for producing custom, ready-made, sportswear and outerwear in Jordan.
The new company will operate under the name J&B International Limited.
As part of the agreement, Jerash will own a 51% equity stake in the joint venture, and Busana will own 49%.
The companies will contribute $1.5 million as working capital to launch the new entity.
"J&B International will give Jerash new opportunities to expand its business by serving Busana's global branded customers in Jordan, which has long-standing duty-free export agreements with the U.S., the EU and other countries," said chairman and CEO Sam Choi.
"With our existing manufacturing facilities in Jordan and expansion plans already in place, we anticipate initial manufacturing for Busana's customers to begin in the second half of 2023."
Price Action: JRSH shares are trading flat at $4.79 on the last check Tuesday.
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