Jerash Holdings and NTX(R) Sign Agreement to Form Joint Venture Company for Vertical Integration

-- JV to Bring New Revenue Source Through Innovative, Sustainable Textile Dyeing in Jordan --

FAIRFIELD, NJ / ACCESSWIRE / October 12, 2023 / Jerash Holdings (US), Inc. ("Jerash") (NASDAQ:JRSH), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced it has entered into a definitive agreement to form a joint venture with Newtech Textile (HK) Limited, a subsidiary of Newtech Textile Technology Development (Shanghai) Co. Limited ("NTX"), a textile innovation and solution company.

The joint venture company, to be named Jerash Newtech (Hong Kong) Holdings Limited, plans to build a new state-of-the-art fabric facility in Jordan to produce fabrics in a sustainable and innovative manner by utilizing the NTX Cooltrans proprietary waterless coloration technology.

The technology is expected to allow for a more than 90 percent water reduction, 65 percent energy savings, 40 percent chemical reduction and over 50 percent carbon footprint reduction in the dyeing process in comparison with traditional coloration approach. The joint venture is anticipated to foster local employment in high-tech-related jobs. Jerash is working with the Jordanian government on possible support and collaboration for the project.

Estimated capital expenditures for the joint venture to build the facility will be approximately $30 million, which includes a knitting plant, a dyeing and printing house, laboratory facilities, offices, workers' housing, and related set-up costs over the next several years. Construction is expected to begin in the first half of 2024. Jerash will hold a 51 percent interest, while NTX will hold a 49 percent interest in the joint venture. Jerash and NTX will contribute proportionate amounts of capital to the joint venture.

"The joint venture represents a new vertical integration offering for Jerash's customers, as well as a new revenue source for Jerash," said Sam Choi, Jerash's chairman and chief executive officer. "Investment in this technology reaffirms our commitment to sustainability, as we strive to uphold our promise to responsible growth in the textile industry. Partnering with NTX, we believe our textile products will achieve an unprecedented level of sustainable and efficient production, meeting the ESG focus of global apparel brands."