ZF English

YKK Romania wants to consolidate by investments

16.05.2005, 19:35 9

YKK Romania, a member of the Japanese YKK Group intends to consolidate its position on the Romanian market by making new investments, as part of its strategy to expand into Europe, Middle East and Africa (EMEA).

"We first built a factory in Poland. Romania came next. We need to move along with our clients, so I cannot tell you where exactly our next factory will be located. The sure thing is that the textile industry is migrating towards Eastern Europe because labour is cheaper here," said Masaharu Ando, chairman of the European division of YKK.

The Japanese group completed an 8.5 million-euro investment in a zipper factory in Buftea at the end of last week. At present, the production capacity of the factory in Romania is of 35 million zippers a year.

The company officials projected a 4 million-euro turnover for this year, which is expected to double in 2006.

According to the development strategy, the production capacity of the factory in Buftea will reach 100 million zippers a year in approximately six years. The exact volume of investment is yet unknown because, as the YKK Romania representatives say, no final decision in this regard has been made until now.

The factory in Buftea takes up 6,000 sqm and has 60 employees. It will expand by 5,500 sqm by 2007 and hire another 60 people.

"The expansion of the investment depends on the textile industry in Romania. The output here might also increase as a result of the reduction of the output at the facilities in northern Europe," Katsuya Kawanishi, general manager of YKK Romania said.

The current output is sold on the domestic market exclusively and is complemented by imported YKK products. "If considering that the zippers made here are used for the clothing made in Romania in view of exports, we may say that we are exporting indirectly. We may export our output in the future depending on the group''s policy," Kawanishi said.

According to the company''s estimates the Romanian textile industry needs 200 million zippers every year. YKK Romania covers approximately 30% of this demand, both through its domestic production and imports from members of the group outside the country.

stelian.vezentan@zf.ro

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