Tan Holdings Corporation

Tan Holdings Corporation is a family-owned holding company headquartered in Saipan in the Commonwealth of the Northern Mariana Islands. The corporation was formally established in 1991 as an umbrella organization for businesses developed by the Tan family, whose commercial activities in Guam date to 1972. The family enterprise was built by Tan Siu Lin, with support from his wife, Lam Pek Kim, and their children. Its early activity included distributing films to local cinemas, and it subsequently expanded into real estate, shipping, garment manufacturing, aviation, tourism, insurance, logistics, retail distribution, publishing, information technology, financial services, commercial fishing, ground handling, hotels, entertainment, and fast food. The group became especially prominent in Saipan during the expansion of the island's garment industry in the 1980s and 1990s. Tan family garment operations were among the largest on the island, but the sector contracted after the lifting of United States textile quotas on Chinese imports in 2005. Manufacturing shifted toward China, where labor costs were lower, and Saipan's remaining garment factories closed by 2008. Tan Holdings responded by placing greater emphasis on tourism and related services, promoting the Northern Mariana Islands to visitors from China, South Korea, Russia, and Japan. Tan Holdings also developed businesses serving the transportation and regional-services infrastructure of the western Pacific. In 1998 it launched Asia Pacific Airlines, a cargo carrier. The company later attempted to establish Saipan Airlines, although the project did not begin operations; a contractual dispute with Arizona-based Swift Air followed after the airline venture failed to proceed and Tan Holdings sought return of a security deposit. Other group activities have included cinema operations through Tango Inc., insurance, cargo and logistics services, and hospitality. The corporation has remained closely associated with members of the Tan family. Jerry Tan, the third son of Tan Siu Lin and Lam Pek Kim, has served as president and chief operating officer and has led much of the group's regional activity from Saipan. George Chiu has served as executive vice-president from Guam. In 2002, the family established the Tan Holdings Foundation to support the philanthropic interests of Tan Siu Lin and his family. The company has also been associated with a major labor controversy involving garment workers on Saipan. In 1992, Tan Holdings, described as a Levi Strauss subcontractor, faced findings concerning sub-minimum wages, excessive working hours, inadequate living conditions, and related labor abuses. The resulting settlement and restitution exceeded $9 million and covered approximately 1,200 workers. Levi Strauss subsequently ended its relationship with the company after the conditions became public. The episode remains a defining part of the corporation's public history. In later years, Tan Holdings continued to adjust its portfolio through investment and divestment. In 2019 it sold an 80 percent interest in Guam's Century Insurance to South Korean insurer DB Insurance. In 2021 the group reached an agreement with InterContinental Hotels Group to rebrand or redevelop The Fiesta Resort Guam as a Crowne Plaza Resort. These moves reflect the group's continuing focus on regional services, hospitality, transportation, distribution, and other businesses relevant to Pacific island economies.

Tan Holdings Corporation was established in Saipan in 1991 to coordinate businesses created by the Tan family. The family's commercial roots in Guam reach back to 1972, when Tan Siu Lin began with film distribution for local cinemas. With the participation of Lam Pek Kim and their children, the enterprise expanded into real estate and shipping before developing into a diversified western Pacific business group. During the 1980s and 1990s, the Tan family's garment factories were among the largest employers in Saipan's garment sector. The business was also connected to Levi Strauss production through subcontracting arrangements. In 1992, labor authorities and related proceedings brought attention to allegations and findings involving wages below legal requirements, seven-day workweeks, 12-hour shifts, poor living conditions, and other mistreatment of Chinese migrant workers. The company paid what were then characterized as the largest fines in United States labor history and distributed more than $9 million in restitution to approximately 1,200 employees. Levi Strauss later severed its relationship with Tan Holdings. The controversy remains central to accounts of both Saipan's garment industry and the corporation. The island's garment sector declined after the United States removed quotas on Chinese apparel imports in 2005. Production moved to China, and the last Saipan factories closed in 2008. Tan Holdings consequently placed more emphasis on tourism, promoting the Northern Mariana Islands in China, South Korea, Russia, and Japan. The group also broadened its service portfolio through cargo aviation, commercial fishing, airport ground handling, logistics, hotels, information technology, publishing, financial services, insurance, retail and wholesale distribution, entertainment, and fast food. Aviation became a notable area of expansion. Asia Pacific Airlines was launched in 1998 as a cargo airline serving the region. A later effort to create Saipan Airlines did not succeed, and the company became involved in litigation with Swift Air concerning repayment of a security deposit. The group also operated movie theaters through Tango Inc., including a second location opened in 2006. Tan Holdings created the Tan Holdings Foundation in 2002 to organize and advance the philanthropic activities associated with Tan Siu Lin and the Tan family. Leadership has remained family-oriented: Jerry Tan, a son of Tan Siu Lin and Lam Pek Kim, has served as president and chief operating officer, while George Chiu has served as executive vice-president from Guam. In the 2010s and 2020s, Tan Holdings continued to reshape its portfolio. It sold 80 percent of Century Insurance in Guam to DB Insurance in 2019. In 2021 it entered an agreement with InterContinental Hotels Group concerning the conversion of The Fiesta Resort Guam into a Crowne Plaza Resort. The available reference material presents Tan Holdings as an active, privately held, diversified regional group rather than a publicly listed corporation.

• 2021

  Fiesta Resort Guam conversion agreement

  [1]Tan Holdings Corporationen.wikipedia.org

  The group agreed with InterContinental Hotels Group to turn The Fiesta Resort Guam into a Crowne Plaza Resort.

• 2019

  Majority stake in Century Insurance sold

  [1]Tan Holdings Corporationen.wikipedia.org

  Tan Holdings sold 80 percent of Guam's Century Insurance to DB Insurance of South Korea.

• 2008

  Saipan garment factories closed

  [1]Tan Holdings Corporationen.wikipedia.org

  The decline of local garment manufacturing culminated in the closure of Saipan's last factories.

• 2006

  Tango opened a second cinema location

  [1]Tan Holdings Corporationen.wikipedia.org

  Tango Inc., a Tan Holdings company operating movie theaters, opened its second location.

• 2005

  Chinese apparel quota restrictions lifted

  [1]Tan Holdings Corporationen.wikipedia.org

  The lifting of United States quotas on Chinese apparel contributed to the relocation of garment production away from Saipan.

• 2002

  Tan Holdings Foundation established

  [1]Tan Holdings Corporationen.wikipedia.org

  The family established a foundation dedicated to supporting the philanthropic activities and objectives of Tan Siu Lin and his family.

• 1998

  Asia Pacific Airlines launched

  [1]Tan Holdings Corporationen.wikipedia.org

  Tan Holdings entered cargo aviation with the launch of Asia Pacific Airlines.

• 1992

  Garment labor settlement

  [1]Tan Holdings Corporationen.wikipedia.org

  The company paid substantial fines and more than $9 million in restitution related to labor conditions affecting approximately 1,200 workers.

• 1991

  Tan Holdings Corporation established

  [1]Tan Holdings Corporationen.wikipedia.org

  The Saipan-based holding company was formed to coordinate businesses developed by the Tan family.

• 1972

  Tan family business begins in Guam

  [1]Tan Holdings Corporationen.wikipedia.org

  Tan Siu Lin began the family's commercial activities in Guam by distributing films to local cinemas.

A diversified, family-owned regional business group serving the economies and consumer markets of Micronesia and the western Pacific.

• Cargo airline · 1998

  Asia Pacific Airlines

  Asia Pacific Airlines is the group's cargo-airline business, launched in 1998 as part of Tan Holdings' expansion into regional transportation and Pacific logistics. Its role fits the group's broader portfolio of aviation, ground handling, shipping, and distribution services.

• Movie theaters and entertainment

  Tango Inc.

  Tango Inc. operates movie theaters as part of Tan Holdings' entertainment and amusement activities. The business expanded with a second location in 2006 and represents one of the group's consumer-facing operations in the Pacific island market.

• Hotels and resorts

  Regional hospitality operations

  Tan Holdings' hospitality activities include hotel and resort investments in the western Pacific. The group has emphasized tourism as a strategic response to the decline of Saipan garment manufacturing and has marketed Pacific destinations to visitors from Asian and other international source markets.

• Wholesale, retail, shipping, and logistics

  Distribution and logistics services

  The group provides a broad range of distribution, shipping, logistics, retail, and wholesale services. These activities support the movement of goods across geographically dispersed Pacific markets and complement Tan Holdings' aviation, cargo, and ground-handling businesses.

• Apparel manufacturing

  Garment manufacturing

  Garment manufacturing was historically one of the Tan family's most important operations in Saipan. The factories were major participants in the island's 1980s and 1990s garment boom, but the business contracted after apparel production shifted toward China and Saipan's remaining factories closed by 2008.

• 1992

  Saipan garment-worker labor abuses

  Tan Holdings' garment operations were associated with allegations and findings concerning sub-minimum wages, extremely long work schedules, poor living conditions, and other mistreatment of Chinese workers. The company paid substantial fines and more than $9 million in restitution to approximately 1,200 employees. Levi Strauss ended its relationship with the company after the conditions became public.

  Source

Read more

• Pacific tourism promotion

  China · South Korea · Russia · Japan

  Following the decline of Saipan garment manufacturing, Tan Holdings invested more heavily in tourism and promoted the islands to several international visitor markets, including China, South Korea, Russia, and Japan.

  Outcome. The initiative reflected a strategic shift toward hospitality and tourism, although the available reference does not provide quantified results.

  Source

• 2021

  Crowne Plaza Resort conversion agreementStrategy

  Background

  Tan Holdings pursued continued investment in Pacific hospitality after tourism became a more important part of its portfolio.

  Action taken

  The group signed an agreement with InterContinental Hotels Group to convert The Fiesta Resort Guam into a Crowne Plaza Resort.

  Aftermath

  The agreement positioned the property for operation under IHG's Crowne Plaza brand; the available reference does not provide completion details.

  Source

• 2019

  Sale of Century Insurance majority stakeM&A

  Background

  Tan Holdings reassessed its portfolio of regional financial-services businesses.

  Action taken

  The group sold an 80 percent interest in Guam's Century Insurance to DB Insurance of South Korea.

  Aftermath

  DB Insurance became the majority owner, while the available reference does not specify the continuing ownership arrangement or transaction value.

  Source

• 2012

  Saipan Airlines venture and Swift Air litigationOther

  Background

  Tan Holdings attempted to launch Saipan Airlines but the proposed airline did not begin operations.

  Action taken

  The company sued Swift Air over the alleged failure to return a security deposit connected with the unsuccessful airline arrangement.

  Aftermath

  The venture remained unsuccessful; the available reference does not state the final legal outcome.

  Source

• 2005

  Shift away from garment manufacturingStrategy

  Background

  The removal of United States quotas on Chinese apparel increased competitive pressure on Saipan factories, encouraging production to move to China.

  Action taken

  Tan Holdings moved strategic emphasis toward tourism and diversified regional services as the Saipan garment industry contracted.

  Aftermath

  Saipan's last garment factories closed in 2008, while Tan Holdings continued developing hospitality, aviation, logistics, distribution, and other businesses.

  Source

1. 1Tan Holdings Corporationen.wikipedia.org