Paul Ho, the company's general manager, said it used to source from more than 100 factories in India, China, Vietnam and Thailand in past years but stopped ordering Thai-made apparel three or four years ago as it cut global vendors by 35-40%.

However, the company's policy is changing again as production costs and wages in China increase.

The company expects to conclude a business deal with CMG within the next six to nine months.

Initially CMG will produce simply designed T-shirts and shirts on a small scale and then expand to denim lines in the future.

"If we have a production base in Thailand, Thai people will have more choices for fashion products and we can gain new customers," said Mr Ho.

The shirts will be exported to Asean markets before hitting the global stage when it reaches an economy of scale.

Sixty Far East has three brands: Miss Sixty, Energie and Killah. Its sales in Asia will contribute to 20% of global sales this year and will rise to 30% in the next three to five years. Last year its global sales were 500 million.

"Asia is the only continent where our business keeps growing and it will be the growth engine for us in the future," said Mr Ho, adding that Thailand was the group's second most important market after China.

The group has 150 Miss Sixty points of sale around Asia and the number will rise by 50% over the next three to five years.

Thailand has the Miss Sixty and Energie brands already and Killah was introduced yesterday, targeting women aged 15-25.