Pasmatex spends 4m euros to relocate factory

Timisoara-based textile company Pasmatex intends to invest up to 4 million euros in the next 18 months to relocate the plant it owns in Timisoara, Maria Grapini, general manager of the company told ZIARUL FINANCIAR. “We already bought a 40,000-square metre plot of land in the industrial area of the city for one million euros,” says Grapini. According to her, the new plant will have two facilities, one for ready-to-wear clothes and one for the weaving department. She explains that such a textile company could not be located in the centre of city, and adds that construction work for the new plant is to start in September. Pasmatex is currently located at the very heart of Timisoara. Grapini estimates the new facility will start operating at the end of 2007. She says the investment will be funded both from the company”s own funds and from bank loans. Pasmatex registered a turnover worth 160 billion RON (4.4 million euros), below the 5.8 million euros announced by the company last year. “We saw a decline because we no longer had the courage to sign export contracts due to fluctuations in the euro exchange rate,” explains Grapini. She says other reasons for the results below expectations include the increase in utility costs as well as the increase in prices for products imported from China. ZF