Mondex Sibiu spends 3m euros on equipment and new stores

The Sibiu-based textile manufacturer, Mondex, will this year invest nearly three million euros to boost the production capacity and expand the store network; the money will come from a bank credit and from an increase in the share capital by 6.5 million RON, to 9.7 million RON. “Investments will be used to acquire knitting machines, steam generators and other equipment, which will boost the production capacity by some 25%. We also intend to expand our store network from 20 to 70 units this year,” stated Cosmin Comsa, an economist with the company. In order to be able to fund the investments, company shareholders will discuss the increase in the share capital and taking out the bank credit in the General Meeting called for July 1. “We don”t know the exact sum we will borrow yet; the sum we need is one million euros. We are in talks with several banks and, in two or three months, we will receive the credit,” said Comsa. Founded in 1927, Mondex was privatised in 1997 by the MEBO method (management and employees buyout). The company is controlled by two individuals, each owning 44.8% in it. Mediafax