Cambodian garment workers clash with police

July 27 (Reuters) – At least nine female garment workers were injured on Tuesday in clashes with Cambodian riot police who used shields and electric shock batons to try to end a week-long strike over the suspension of a local union official.

More than 100 police, at least 50 in riot gear and carrying assault rifles, tried to force an estimated 3,000 female workers back into their factory, pushing several to the ground and stunning them with batons, a Reuters witness said.

The clashes were the latest setback for an industry that was badly hurt by the global economic slump from 2008 and more recently has been plagued by strikes over low pay and working conditions.

The factory on the outskirts of the capital, Phnom Penh, is owned by a Malaysian firm and produces garments for companies including Gap (GPS.N), Benetton (BNG.MI), Adidas (ADSG.DE) and Puma (PUMG.DE).

Srey Kimheng, a secretary-general of the Free Trade Union (FTU), told Reuters at least nine workers were injured when police with a court order tried to clear roads and force them back to work.

The demonstration was brought to an end, and union leaders were talking to the workers about calling off their action aimed at forcing the company to give the union official his job back.

Local police chief Mok Hong insisted there had been no injuries and told Reuters the operation had gone smoothly.

The sector, Cambodia’s number three currency earner behind agriculture and tourism, shed almost 30,000 jobs in 2009 after a drop in sales to the United States and Europe.

Industry data showed the country exported garments, textiles and shoes to the value of $2.3 billion last year, down from $2.9 billion in 2008. More than half go to the United States.

An estimated 300,000 of Cambodia’s 13.4 million people work in the garment manufacturing sector and send vital cash to impoverished rural villages where many people live on less than $1 a day. (Additional reporting by Chor Sokunthea; Editing by Martin Petty)

UPDATE 1-Fast Retailing, DNP Hldgs set up Malaysia venture

June 29 (Reuters) – Japan’s Fast Retailing Co (9983.T), the operator of Uniqlo casual wear shops, said on Tuesday it has set up a joint venture with a unit of DNP Holdings (DPBM.KL) to open stores in Malaysia.

The company, which competes with Gap (GPS.N) and H&M (HMb.ST) in the budget apparel sector, has been aggressively expanding in Asian markets to feed its growth.

The Uniqlo chain has about 800 stores in Japan and runs 60 in China and 50 in South Korea.

The company said it plans to open its first store in Malaysia by the end of this year.

“We have positioned Asia as a strategic region and we think Malaysia has a very good business potential,” said Uniqlo spokesman Daisuke Hase.

Fast Retailing said it would hold a 55 percent stake in the joint venture with DNP Clothing, a wholly owned unit of DNP Holdings. (Reporting by Sachi Izumi and Taiga Uranaka; Editing by Michael Watson)

Esprit falls to 3-month low on Europe debt concern

(Reuters) – Shares of Europe-focused fashion retailer Esprit Holdings (0330.HK) fell 5.6 percent to a more than three-month low on growing concern about the spread of Europe’s debt crisis to other weak eurozone countries.

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The shares fell to HK$51.50, the lowest since January 26, compared with a 2.14 percent drop in broader Hang Seng Index .HSI.

Esprit, which competes with Swedish clothing retailer Hennes & Mauritz (HMb.ST), U.S. group GAP (GPS.N) and Spain’s Inditex (ITX.MC), said total sales in the nine months ended March eased 1.8 percent from a year earlier, despite an improving global economy.

Sales in Europe accounted for 84 percent of Esprit’s total turnover during the nine-month period.

(Reporting by Donny Kwok)