Leadership Series
How Cheng Kung Garments Stays Ahead with Recycling and Automation
When the fashion world talks about dynamic manufacturing hubs, Hong Kong and China aren’t new to the conversation. But the stories making international headlines often overlook the manufacturers quietly evolving – those merging tradition with new technology to keep pace in an industry that never stands still.
Vincent Djen’s journey with Cheng Kung Garments Factory Ltd. (CKG), his family’s Hong Kong-born business, is a story of reinvention – a blend of legacy craftsmanship in outerwear and cutting-edge circular textile innovation. In a wide-ranging conversation with Inside Fashion, Mr. Djen offered a rare look inside a company that is both preserving its heritage and leading the charge into a more sustainable, tech-enabled future.
Like many Hong Kong success stories, Mr. Djen’s background starts with a classic narrative: roots in textiles and garments, international education, and a deep connection to a family enterprise. But what sets CKG apart is his vision to evolve the company so that it can compete in a market very different from the way it was even a decade ago. Founded in 1975, the company has grown from a traditional garment maker – specializing in outerwear for international markets – into a forward-looking operation tackling some of the industry’s biggest challenges.
“I grew up in a garment textile family,” Mr. Djen told Inside Fashion. “My parents started the company nearly 50 years ago. My brother and I both joined the business, and I’ve been in the industry for 20 years.” The core business remains globally focused. “We specialize in outerwear – padded jackets, down puffers, parkas, blazers, and coats, mostly for Scandinavia, the EU, Australia, and New Zealand.”
Three years ago, spurred by conversations with environmentally minded customers, Mr. Djen launched a parallel track – a serious investment in post-consumer textile recycling. “I got excited because I have some engineering background, and I like taking things apart. Textile recycling is pretty interesting,” he said.
CKG’s recycling operation is built for scale and transparency. The company collects post-consumer textiles – mostly used clothing – through a unique partnership that leverages digital tools. “We have a partner who collects about 100,000 clients’ clothing per year through a mini program in Alipay. People just schedule a pickup, and someone comes to their door. They get reward points or a small payment – sometimes products, sometimes they can participate in reforestation programs,” Mr. Djen explained.
Clothing arrives mixed – think everything from teddy bears to uniforms – requiring intensive pre-sorting both by garment type and fiber composition. “What makes us different from others, especially in Europe, is we pre-sort. For example, when collecting for nylon, we single out yoga pants, stockings, sweatshirts, even down jackets for down extraction. Then we sort by fiber in our Guangzhou facility – separating nylon 6, polyester and so on.”
From there, the sorted textiles are shredded and pelletized, creating feedstock for chemical and enzymatic recyclers – who process these materials into new fibers. “We are the pre-processor; they are the spinners. If you think of a pizza, we prepare the dough – they make it into whatever pizza they want.”
The result: a circular model that’s not a theoretical ideal, but an operational reality. The recycling division has evolved from a small side project to a rapidly growing business, attracting major brands and global fiber leaders. “BASF and others come to us because they trust our pre-sorting and transparency”, said Mr. Djen.
Despite the high profile of recycling and sustainability, Mr. Djen is frank about the dual challenges of managing two divergent sectors. “Manufacturing runs at a very mature, steady pace – same big global brands, lots of established systems,” he said. “Recycling is a different world – it’s growing, it’s more volatile, and we work directly with chemical, enzymatic, and even mechanical recyclers. When we started in textile recycling, it was new territory. Now, especially as EPR (Extended Producer Responsibility) and new policies come in, everyone needs our feedstock.”
Crucially, the recycling operation both complements and future-proofs the manufacturing business, supplying brands with the sustainable materials that are fast becoming a regulatory requirement – particularly in the EU, CKG’s largest market.
One of the most striking aspects of Mr. Djen’s approach is his pragmatic take on manufacturing technology. While the world dreams of fully robotic production lines, he sees incremental “micro-automation” as the real driver of efficiency and quality in today’s factories.
“China has invested a lot in automation, but for outerwear and more fashion-oriented products, where styles and fabrics are always changing, total robotics isn’t practical,” he explained. “What we’re seeing is a move to modular automation – machines that combine several steps, so you can, for instance, do both back pockets at once instead of one by one. We make garment components in one part of the factory, then assemble everything on the main line, like car manufacturing.”
The benefits? “Better quality control, more consistent output, and some time savings depending on the process.” This model also addresses labor shortages and rising costs. “You have to have some automation to stay competitive. Full robotics is tough – programming and maintaining robots isn’t easy or cheap, especially for changing styles. Micro-automation is the realistic path forward.”
While the industry has shifted from large orders to frequent, smaller batches – thanks to the rise of DTC and fast fashion – CKG has managed to adapt without sacrificing quality. “We routinely do orders as small as 100-200 pieces for DTC brands. That used to be unimaginable – my parents would talk about 30,000 or 50,000 piece orders! Now, 2,000 pieces is a big order, and everyone is adjusting,” Mr. Djen said.
But there’s a catch: “We don’t chase low-cost, low-quality fast fashion. Our focus is on mid-market to premium brands, where quality and service come first. We can offer small batches, but we don’t cut corners.”
Despite clear progress, he doesn’t downplay the real challenges facing manufacturers. “Geopolitical risks, rising costs, sustainability regulation – none of these are simple. EU requirements are tough; automation and AI are moving fast. There’s more to understand and adapt to now than there was even a decade ago.”
Yet, he is optimistic. “Apparel is seen as a sunset industry, but so much is evolving – automation, digitalization, sustainability. And textile recycling has potential to become a significant part of what we do.”
CKG’s future will continue to blend manufacturing and sustainability. “We’re not just a factory – we’re partnering with brands on closed-loop programs, running deadstock fabric initiatives, and advising on circular solutions,” Mr. Djen said. He sees a near future shaped by new business models, more rapid change, and constant learning. “Circular fashion is moving at the pace of AI – what works now might need to change in two years. We’re focused on keeping up, staying flexible, and doing a good job.”
While profits in textile recycling are just beginning to take off – at break even or a small profit currently – he sees clear growth ahead. “2025 and 2026 should be inflection points – especially as recycling requirements in Europe ramp up.”
In an industry where disruption is the new normal, it’s tempting to fixate on the headline-grabbing brands and high-velocity DTC newcomers. But as CKG’s story shows, the real revolution may be happening on the factory floor – where old-school expertise meets new-world technology, and where the next generation is just as likely to be prepping recycled pellets as hand-stitched parkas.
For Hong Kong and China’s manufacturers, the message is clear: adaptation is the only constant, and the future belongs to those willing to innovate, learn, and evolve – without ever losing sight of where they came from.
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