Major Chinese Suit Manufacturer Embraces Unit Production System


Xinlang Sinoer Produces Millions of Men's Suits Annually Using Eton System

ALPHARETTA, GA - April 10, 2006 - Eton Systems, the world's leading provider of unit production systems (UPS) for the sewn-product industries, announces that Xinlang Sinoer Dress Co, Ltd., one of the largest and most advanced companies in the Chinese apparel industry, has recently added three new Eton production lines in its men's suits production facility located in Zhucheng, in the Shandong province of China. Over recent years, the company has implemented several Eton production lines, which now represents approximately 60% of the total factory operations.

Established in 1993, Shandong Xinlang Sinoer Dress Co., Ltd has grown from its roots as a domestic provider to a major global supplier of more than 13 million apparel products annually. The company employs 8,600 people who are shareholders of the company, and occupies 7.5 million square feet of manufacturing facilities. It produces 3 million jackets and 6 million trousers in its primary product line of men's suits. Xinlang Sinoer also produces men's shirts, women's dresses, T-shirts, sweaters and other fashion garments. Approximately 40% of is production is exported to Japan, Korea, United States, Europe and Canada. Its primary clients include Perry Ellis, C&A, Jack & Jones, Esprit, Calvin Klein, BCBG, Haggar, Marks & Spenser and Hartmarx.

In addition to the development of its international sales organization, an important key to the continued success of Xinlang Sinoer is its continuous focus on strengthening the enterprise by employing the best technical talent and the most advanced technologies from around the world. "We have continued to invest in Eton Systems because they help us build sustainable competitive advantages", stated Tony Chen, General Manager of the Foreign Trade Department at Xinlang Sinoer. "Specifically, the Eton system helps us improve product quality, dramatically increase factory efficiency, and reduce our production cycle times. Even with our globally competitive labor rates, we know that other regions such as India are competing on price for the same programs. And as consumer demand for higher quality grows, we continue to automate our processes to insure that we can consistently deliver quality products in order to grow our domestic market share."

Eton's unit production system (UPS) comprises a custom-designed overhead conveyor system that physically moves products of all types and sizes through the production process, eliminating manual transportation time as well as non-productive operator handling time. It dramatically reduces non-productive operator handling by consistently delivering perfectly organized component parts in the most efficient manner for each operation. By converting batch processing to highly efficient unit production flow, Eton drastically reduces costly WIP inventories, shrinks production lead times, and focuses resources on the highest priority products. The system also collects shop-floor data that supports sophisticated process control management. Eton's UPS supports lean manufacturing practices by minimizing floor space requirements, reducing work-in-process inventories, and increasing productivity.

About Eton Systems
Eton Systems AB is the innovator and world's leading supplier of the Unit Production System (UPS), the renowned productivity and management system developed specifically for use in the sewn-products industries. Eton's UPS automates material flow through the production process and minimizes material handling for each operation throughout the manufacturing process. Eton's technology and know-how enables companies to manage material and information in the most efficient fashion, including wall-to-wall data management from operations performed within as well as outside of the UPS system.

Headquartered in Sweden, the company operates with direct subsidiaries and agents worldwide. Eton Systems Inc. is based in Alpharetta, GA and is a wholly-owned subsidiary of Eton Systems AB.

For more information on Eton Systems, phone: (770) 475-8022 (USA - Georgia) or + 46 33 231200 (Sweden); e-mail: sales@etonsystems.com; or visit the website at: www.etonsystems.com.

Global
Fredrik Sätradahl
Marketing
Phone: + 46 33 231200 (Sweden)
fredrik.satradahl@eton.se

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