Princo looks beyond Ikea

Princo, a maker of small kitchen furniture for Swedena??s Ikea Group intends to deliver more than one million products for the store chain of the Swedish group next year, and attain 2 million euro turnover. Princo has supplied more than 14,000 products to Ikeaa??s shops in Europe, Asia and the United States in the first four months of this year, 25% more than in the same time in 2004. Albeit the companya??s turnover went up by 25%, the profit went down in terms of percentage and absolute value, largely because of the depreciation of the European currency. a??We need to boost production this year to compensate for the weakening of the foreign currency and our sales goals can only be attained by investments and an increase in capacity,a?? stated Costel Florescu, the companya??s sole administrator. The company expects 1.5 million euro turnover this year, 25% higher than in 2004. Princoa??s management is also looking for a new partnership, this time with French Conforama Group, worlda??s number two after the Swedish retailer. a??We need both legs to walk,a?? Florescu explains. He says he is in talks with the French company to supply them with kitchen panels, which are larger than those made for Ikea. ZF