The three companies owned by ara Shoes, all of them headquartered in Valea lui Mihai (Bihor county, northwestern Romania), have cumulated revenue of RON430 million (EUR96.5 million) in 2012 and over 2,000 employees. The data, cumulated for the three entities, propels the German-held company to the leading position on Romania’s shoe production market. However, the 3 companies operate independently and each produces under its own brand.
ara Shoes Romania, with revenue of around RON270 million (EUR56 million) and over 1,100 employees last year, invested some EUR20 million starting 1998 in two production units of Bihor and Salaj counties, which manufacture annually two million pairs of shoes for export.
Leonhard Ganter, manager of ara Shoes Romania, says the German group has no plans of opening a new plant in Romania.
ara-branded shoes are sold both in the company’s own stores and in the stores of partner retailers.
“We have a total of 1,126 employees and we want to boost the number by 10% this year,” says Ganter. However, he adds that though Romania has cheap workforce and his company wants to hire, it can hardly find new employees. In the areas the company’s plants are located, many Romanians decided to seek jobs in other countries.
“We manufacture two million pairs of shoes per year in Romania, and we want to boost production as we hire,” Ganter said.
“Of the overall production, 70% goes to European markets and 30% to other markets. We do not have local clients.”
With revenue of EUR56 million in 2012, ara Shoes accounts for almost 5% in Romania’s shoes exports.
“We expect revenue to rise by 10%-15% this year, the same as last year”.
(English version by Catalina Apostoiu)