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Textile-Contact plans to create garment production in Rivne raising about EUR7.8 mln of investments
KYIV. Jan 18 (Interfax-Ukraine) – Textile-Contact has chosen Rivne to implement the project of installing an automated sewing line, plans to attract about EUR 7.8 million in foreign investment in its implementation, said owner of the group Oleksandr Sokolovsky.
"The line, which has no analogues in Ukraine, is four times more productive than the existing ones in terms of the number of products. The need for investments is about EUR 7.8 million, including EUR 6.8 million – the cost of German equipment," he said during the annual conference Ukraine Economic Outlook last week.
Sokolovsky added that the payback period for the project is 38 months from the start of production. The preparatory period is nine months (for ordering and supplying equipment, logistics and installation). 100% of sewn products will be exported to Europe and the USA.
At the same time, he recalled that even before the war, the project was planned to be implemented on the basis of the existing garment factory TK-Style in Chernihiv, which has been specializing in sewing women’s and men’s clothing for almost 20 years and now has orders for at least six months ahead. However, with the outbreak of a full-scale war, the factory team decided not to postpone the project and implement it in Western Ukraine.
"We are going to implement the project in Rivne. The war has made its own adjustments. Now it is not rational to build a new facility or invest in overhaul of premises. We have chosen a prepared location in the north-west of Ukraine to place equipment, where the distance to the front line is more than 800 km," Sokolovsky notes.
The company has a guaranteed five-year order from Germany for the production of an automated line (tailoring of trousers, jackets, coats).
"This will be the first enterprise in Ukraine that, due to automation, will be able to compete in productivity, and therefore in prices, with China and other countries of Southeast Asia," says the owner of the group.
