Cone Denim Exits China, Shifts Focus to Mexico
The company will close its Jiaxing facility, operational since 2007, and make Mexico its primary denim production platform
Cone Denim is exiting its production in China and shifting its focus to its manufacturing base in Mexico, citing changes in global trade, customer strategies, and cost pressures as reasons for the decision. The company will close its Jiaxing facility in Zhejiang province, which has been operational since 2007.
The Jiaxing facility has produced denim fabrics in weights from 5.5 oz. to 16 oz., as well as selvage denim. In 2024, the company constructed and launched its first rooftop solar project at the Jiaxing facility, boosting its use of renewable energy and lowering greenhouse gas emissions.
Cone Denim president Steve Maggard said the company is positioning itself for long-term competitiveness in a changing global market. The decision to exit China was made after a comprehensive review of Cone Denim's manufacturing footprint, the global denim market, and changes in customer sourcing needs.
Recent changes in global trade, evolving customer strategies, cost pressures, supply chain considerations, and broader geopolitical circumstances contributed to the decision to curtail denim production in China. The Mexico operations will serve as the primary platform for denim production once the exit from China is complete.
## Why it matters The decision marks a significant change in Cone Denim's manufacturing network, but the company remains committed to serving its customers with the same quality, innovation, reliability, and service that have defined it for generations. The shift in focus to Mexico is part of the company's ongoing strategic transformation, aiming to position itself for long-term success in a changing global market.
The closure of the Jiaxing facility will likely have an impact on the local stakeholders, employees, and suppliers. However, Cone Denim has committed to supporting them through this transition with transparency, care, and disciplined execution. As the company navigates this change, it will be important to monitor how the shift to Mexico affects its operations and customer relationships.
## What happens next Cone Denim will now focus on its Mexico operations, which will serve as the primary platform for denim production. The company will likely work on transitioning its production and supply chain to Mexico, ensuring a smooth transition for its customers. With the exit from China complete, Cone Denim will be positioned to compete in the changing global market, prioritizing quality, innovation, and customer service.
