H&M supplier expansion in Asia ahead of EU deal

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Nine H&M suppliers plan new textile and garment factories in Indonesia and Hong Kong ahead of an EU trade deal, with the retailer’s purchasing commitments to the projects still undisclosed

H&M store in Brisbane, Australia.
The suppliers are making the investments, while H&M has publicly endorsed comparable upstream projects.

JAKARTA – Nine Chinese and Hong Kong supply-chain partners of H&M will invest in new Indonesian textile and garment factories ahead of significant changes to the country’s EU trade arrangements.

The build-out raises a question at the heart of responsible purchasing: what commitments make upstream investment on this scale viable, and how much of the risk is shared with the brand?

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