US-based company Paxar, one of the most important manufacturers of tags and labels (ranging from clothes labels to barcodes and RFID tags), is to invest 4 million euros in a factory for woven labels in Ploiesti. It also plans to relocate some of its Western European production to the plant.
The move confirms the trend seen in recent years whereby textile manufacturing is gradually moved to Romania, followed by accessory production. Paxar already owns a facility that makes fabric care and content labels in Bucharest, in which it has invested 3 to 4 million euros to date.
"We will invest 2.5 million euros in a tag factory in an industrial park near Ploiesti. The investment will reach 4 million euros within two years, mainly because we will eventually be moving the factory to a 10,000 square metre area that we are going to buy in the vicinity of Ploiesti," explained Florin Vladu, Paxar Romania''s head of operations.
The factory will also take over some of the group''s operations from Germany and Italy. The US manufacturer is already operating on the local market though its production facility in Bucharest for the manufacture of fabric care and content labels. Large-scale manufacturing began in 2003 through an initial investment of 1 million euros. New equipment and machinery pushed the value of the investment up to between 3 and 4 million euros.
"The bulk of the output, some 80%, goes to export. Our export clients include Marks & Spencer and the Spanish group Inditex, which owns the Zara chain. We have started making the first RFID tags for Marks & Spencer, and shop sales have already gone up by 25% due to improved inventory management, meaning that gaps in stock can be avoided," added Vladu.
He believes that the opening of the factory in Ploiesti will allow the company to boost its business to twice this year''s estimated level of 5 million euro by 2006.
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