Cone Denim Ditches China
By 2026, all manufacturing will shift to Mexico, citing economic and geopolitical challenges
Cone Denim plans to exit denim manufacturing in China by the end of 2026, the company announced. This decision will see the company end its operations in the country, where it currently operates a mill in Jiaxing, and focus on its manufacturing platform in Mexico.
The company operates mills in Parras and Yecapixtla, Mexico, and will continue to support customers through the transition. The decision to exit China follows a comprehensive review of the global denim market, Cone's manufacturing footprint, customer sourcing needs, and long-term business strategy.
Economic, market, and geopolitical conditions have made it challenging to maintain business for the Chinese mill, according to the company. These factors have affected the competitiveness and long-term sustainability of operating denim manufacturing in China. The business has also been challenged by changing global trade dynamics, evolving customer sourcing strategies, and cost pressures.
Cone Denim president Steve Maggard said exiting China will ensure customers the quality, innovation, reliability, and service they've grown to expect from Cone, and positions the business for long-term success. The company will continue to operate its network of sales, product, and merchandising employees based in Greensboro, N.C., New York, and Los Angeles.
## Why it matters The decision to exit China is significant for Cone Denim, which operates as part of Elevate Textiles, Inc. Pakistan-based Artistic Milliners acquired a majority stake in Cone Denim from Elevate Textiles last year. The move is expected to have implications for the company's customers and the global denim market. With the exit, Cone Denim will become a single-country denim manufacturer, relying on its Mexican platform to meet customer demands.
The company's commitment to serving customers remains unchanged, despite the significant change in its manufacturing network. Cone Denim will support customers through the transition, ensuring minimal disruption to their operations. As the company positions itself for long-term competitiveness in a changing global market, it remains to be seen how the exit from China will impact its business in the coming years.
