Európai Divat to build Ft 13 bln base in Pápa
Monday, March 6, 2006, 13:34
Európai Divat Szolgáltató Kft, a clothing importer and distributor owned by Israeli and German investors, has started building a Ft 13 billion factory and logistics center in the industrial park of Pápa, northwest Hungary, managing director István Mayer announced on Monday. The center, to be built on a 30,000 square meter area in the park, will include a semi-trailer terminal, a petrol station, a 40-room hotel and a small shopping center, Mayer said. About Ft 8 billion of the investment, for which the company will receive a Ft 900 million state subsidy, will go toward equipment, such as clothing presses, labeling machines and packaging equipment, he said. The investment will create more than 600 jobs.
Európai Divat takes delivery of men's and women's garments assembled in Ukraine, Romania and Bulgaria from textiles and silk imported from China and India. The garments are 80% completed when they arrive in Hungary, where the company adds finishing touches and packages them. The clothing is then shipped to Germany and Austria. Európai Divat will deliver some 25 truckloads of finished products a day, or 4,000 men's and women's suits, accounting for 2%-3% of the German ready-to-wear market, Mayer said. Európai Divat targets revenue of Ft 2 billion in 2006, and as much as Ft 6 billion in five or six years, Mayer said.