Chinese clothing manufacturer Shenzhou International Group Holdings Ltd said Sept. 17 it will invest about US$100 million to set up a new downstream garment production facility in Cambodia.

The new plant, which will be used for processes like cutting, sewing, printing, embroidering, packaging and washing, will help strengthen Shenzhou International's overall production capacity.

Ningbo-based Shenzhou International said it will use the amount for leasing the land, constructing the facility, staff quarters and related infrastructure, and the purchase of machinery and equipment.

The company is in the process of setting up a wholly owned Cambodian subsidiary, Shenzhou-Cambodia, to operate the new facility.

Shenzhou International also entered into a permanent lease with the landlord of the Phnom Penh Special Economic Zone in Cambodia for a renewable term of 50 years. The lease provides 413,067 square meters of land for the new facility, with rent of about $22.3 million.