US and EU recession hits Radauti

Textile producer Bucovina Tex did not exactly have a good 2002. After having posted $5.3 million turnover in 2001, the company saw it shrink to $4.6 million last year. At the same time, whereas the 2001 net profit amounted to nearly one million dollars, last year’s net profit barely made it to $400,000. Output followed suit and went down from 1.1 million units in 2001 to 884,000 units in 2002, with the company management blaming it on the fact that most of the foreign clients ordered less than they used to due to the economic recession in the US and the EU. “The knitwear industry has been faced with a series of decisive factors over the last few years, which pushed the turnover down. The above-mentioned slowdown was helped by the domestic competition and the migration of our clients to new markets that can provide a cheaper workforce, such as the Asian countries,” Aurel Olarean, Bucovina Tex general manager told Ziarul Financiar. ZFx