The Chinese shoe manufacturer, which works for Clarks, Rockport, Skechers, Stride Rite and Timberland, is adding seven new production lines in Cambodia, building up to a total annual capacity in that country of 25 million pairs through 44 lines.

The expansion comes as Kingmaker is complaining against continued pressure on its labor costs in China. In releasing its results for the six months ended last Sept. 30, Kingmaker pointed out that minimum wages in Guangdong province rose by almost 20 percent during the period, while the renminbi appreciated by 5.6 percent against the U.S. dollar.

As a result, Kingmaker's gross margin slipped by 2.2 percentage points to only 15.1 percent in the six-month period, leading to a decline of 36 percent in its net income to HK$42.1 million (€4.1m-$5.4m). Sales grew by nearly 9 percent to HK$872.6 million (€85.9m-$112.2m).