Iasitex, one of the top ten producers in the textile industry, is counting on the expansion of production facilities and personnel growth, at a time when most players in the sector are concerned with reducing funds, previously earmarked for investment.
Gheorghe Caescu, 52, has been running Iasitex since March 2006, filling both the position of general manager and that of chairman of the board. Iasitex, part of the Serviciile Comerciale Romane (SCR) group, controlled by businessman Stefan Vuza, has invested around 6m euros over the past 3 years, mainly to retool production facilities.
"To survive on the textile market, one has to have a high level of productivity, in order to sustain both costs and prices at a low level. Salaries in Romania will rise amid EU integration, so we must do something to keep costs flat and salary raises in balance," says Caescu. Two years ago the company acquired the assets of the Pitesti-based Novatex company, which owned a textile plant. The firm, which produces cotton and cotton-like fabrics, now operates under the name of Nova Textile and has Iasitex as its sole shareholder. As a result of this change, Iasitex has almost doubled its production capacity. The two companies have a total number of employees of around 2,500.
Iasitex is the biggest textile distributor for the Swedish giant Ikea, with production facilities and retail outlets throughout South-Eastern Europe, except Turkey. Around 85% of the company's production is exported to countries in Western Europe, the United States and even Asia. Caescu believes that Iasitex is the biggest producer of cotton and cotton-type fabric in Romania and even in the region (Turkish market not considered). Iasitex this year budgeted turnover worth over 20m euros. Company representatives expect the profitability rate to revolve around 10% this year, which would mean a minimum inco
