Core Insights - Panther Denim is establishing a second manufacturing hub in Cambodia to enhance its supply chain control and respond to market demands for diversified sourcing options [1][3][5] Group 1: Expansion Plans - The company will begin trial pilots at its first fully-owned factory outside of China near Phnom Penh, Cambodia, with plans to reach production levels similar to its China factory by the end of 2026, targeting 3 million yards of PFD and 5 million yards of denim per month [2] - The new facility is designed to be automated and serve as a one-stop solution for brands seeking quality comparable to that from China [6] Group 2: Market Challenges - Panther Denim faced significant challenges due to rising tariffs on Cambodian exports to the U.S., which peaked at 49 percent but have since been negotiated down to 19 percent [4] - Geopolitical risks have created market instability, making long-term decision-making difficult for buyers, but the company believes its expansion will provide a more resilient sourcing option [5] Group 3: Industry Trends - There is a noticeable trend of brands pulling out of China, prompting Panther Denim to offer an alternative country of origin to meet client demands for cost-competitive options [6] - While innovation is important, the current focus is shifting towards cost-effectiveness due to newly imposed tariffs [6]