The German Josef Seibel group will bring part of its production to Hungary from Asia and Moldova due to quality problems it experienced there, Hungarian business daily Világgazdaság reported. This will mean more production at the group’s subsidiary in Eastern Hungary and its decade-long supplier, Szamos Cipőipari Kft.
This could be a turnaround for Szamos Kft and Josef Seibel Kft, both situated in Csenger, near the Romanian border, which were both adversely affected by the crisis. In 2009 Szamos had revenues of HUF 1.6 billion and Josef Seibel Kft had revenues of HUF 13,9 billion – but both closed the year with close to zero profit. The latter also had to let go of almost two-thirds of its staff, whittling down its 42 employees in 2008 to 14 in 2009. Meanwhile, Szamos Kft was able to increase its staff from 516 to 525 in 2009.
In order to accomodate for the new orders, Joseph Seibel invested HUF 1.1 billion into the plant, installing, among others, new plastic moulding machinery. The shoe-production capacity of the two shoe manufacturing company in Csenger will thus be doubled, and they will be able to roll out 8,000 shoes daily.
Szamos Kft has delivered an annual average of 900,000 pairs of shoes to Josef Seibel since 1991. Around 40% of Josef Seibel Kft's production is sold in Germany, but the company sells shoes in 40 countries, including the USA, Hong Kong and New Zealand.