The modernization of the 76,000 sqm production unit is part of an investment program worth EUR50 million carried out by Natuzzi group.
The plant produces sofas and woodwork and is one of the biggest greenfield investments in the local furniture industry, with total investments between 2001 and 2015 exceeding EUR38 million. Last year, sofas accounted for 91% of the plant’s sales volume.
In September, EximBank granted a credit line worth EUR10 million to Italsofa Romania for funding the company’s current operations. According to the bank’s representatives, the lender can further support the company’s investment plans.
Most of the production is exported, mainly on European markets – Germany, Great Britain, France and Spain.
The plant in Romania has the opportunity to increase production to cover the growing demand in Europe, according to Natuzzi CFO, Vittorio Notarpietro.
Romanian authorities should act quickly to improve the transport infrastructure, as well as to support the research activity of the companies and the education sector.
In 2014, the company reported net sales of RON303.2 million (EUR68.2 million), down 2.7% on the year, and a 28% lower profit, of RON12.66 million (EUR2.85 million). This year, Italsofa Romania expects sales and profit similar with last year.
Italsofa is the second biggest Romanian producer of furniture, after Aramis.
Natuzzi, Italy’s biggest furniture producer, also owns plants in China and Brazil.