THE recovering global economy and soaring cotton prices promise a better year for the textile industry, according to UniSouth Holdings.
The textile manufacturer, the target of a takeover bid by the Dynamic Business Group, owned by Edward Kwok Wai-tak and his family, would continue to focus on the core business after the acquisition.
''Textiles are showing signs of recovery in Europe and the US. Now orders seem to be picking up,'' said UniSouth executive director Julian Wong Wai-chua.
''And the cotton shortage has made cotton suppliers increase the price. The higher the prices of material, the better off we are because the same profit margin in percentage will give higher profit in absolute terms,'' he added.
Cotton production in Pakistan, India and China has been falling since last year, according to Mr Wong.
He said the industry's down cycle was phasing out for an upward cycle, which was expected to last for three to five years.
Mr Wong said the company would focus on Europe as its main market.