Fast Retailing Co., operator of the popular Uniqlo-brand casual wear retail shops, said Monday it will establish a subsidiary in Kumshan in the Chinese coastal province of Jiangsu on Wednesday.
To be capitalized at $13.3 million, Fast Retailing (Jiangsu) Apparel Co. will be owned 71.43 percent by the biggest Japanese casual clothing retailer and 28.57 percent by Jiangsu Chenfeng Group Co. of China, Fast Retailing said in a release.
Fast Retailing (Jiangsu) Apparel, the second overseas subsidiary of Fast Retailing after one established in Britain last fall, will produce and sell clothes under the Uniqlo brand in China, the Japanese company said.
It said it decided to set up the subsidiary over expectations of further growth in China's apparel business. Jiangsu Chenfeng Group has been entrusted by Fast Retailing with producing clothes.