2024-08-07 01:11:45
Will reduce the number of jobs
“Sparta”, which is more than a century old, was purchased by the Danish textile industry company “JBS Textile group” five years ago – the operations of the legendary factory operating in Naujamiestis at that time were moved to new premises in Vilnius. However, it turns out that the time has come to leave the capital as well.
How lrytas.lt said the manager of “Sparta Textile”, businessman Tomas Tumynas, Metalo str. the premises currently rented by the company will be transferred to other tenants. The entire production of “Sparta” is transferred to the tailoring factory in Kazlų Rūda, which has been operating for more than 30 years, and other facilities located in this town.
“During these five years, the Sparta brand came to life, we got more shelves in stores where this product was not available before. However, during this time there were also many different challenges – the COVID-19 pandemic, a constant rise in wages, increased energy costs.
We feel strong competition from China, Bangladesh, Turkey, Ukraine – the cost price of our competitors is relatively low. It is difficult to compete with cheaper markets, which is why we decided to move production to Kazlų Rūda. This will help us save about 26.5 thousand per month. EUR rental costs. Also, we purchased new equipment that will help save energy costs and efficiency”, said T. Tumynas.
According to the head of the company, the mentioned changes are not the only ones. “Sparta Textile” intends to reduce the volume of production, to switch to the production of higher quality sports, woolen socks, in an area where, according to T. Tumynas, greater competition is maintained between foreign markets. Part of the traditional brand production is promised to be preserved in Lithuania as well.
Automation of knitting processes is also promised – although these changes, according to the entrepreneur, will ensure a higher quality of products, they also mean a decrease in the number of jobs. It is predicted that due to all the mentioned changes, 27 percent will not remain in the company. existing jobs.
“All people were offered the opportunity to move to Kazlų Rūda – after selling real estate in Vilnius and buying it in Kazlų Rūda, there would still be free money. There are such people – very few, but there are. Some are still thinking. Of course, the vast majority cannot afford it and will look for work here in Vilnius. We gave these employees the opportunity to find employment in other companies.
In Kazlų Rūda, the sewing factory has existed for more than 30 years – we will train mechanics who have previously worked in this sewing factory. I have a good relationship with them, I have already talked to some of them – some are doing similar work abroad, some will return. We plan to train the current employees of the sewing shop so that they know how to work not only with sewing machines, but also with knitting machines. We will look for people in Kaunas as well”, said the head of Sparta Textile.
The textile industry is going through difficult times
According to T. Tumynos, the production of “Sparta” retail chains will not decrease – the reduction of production volumes is focused on foreign markets.
It is true that the sales office and warehouses of already manufactured products will continue to remain in Vilnius.
“Since prices and wages are increasing in Lithuania, so that the cost price does not rise, after staying in Vilnius for more than a hundred years, “Sparta” is moving to Kazlų Rūda. This is the way to keep the company in Lithuania”, commented T. Tumynas.
The businessman also added that the entire textile industry is going through difficult times at the moment – this is noticeable when communicating with the major players of the Lithuanian market. Although the products produced in Lithuania have always been valued among Western partners, according to T. Tumynos, due to increased costs, sales are decreasing even in such well-known markets as Scandinavia.
The CEO of Swedbank also spoke about the textile industry facing significant challenges. economist Nerijus Mačiulis. It has been noticed that as wages grow almost twice as fast as the productivity of companies, they are in danger of losing competitiveness and export markets. This is also associated with investments in production automation.
“There are serious challenges in all sectors that either have less opportunity to invest in automation or have invested less. When we talk about the growth of productivity in a company, it depends not only on the efforts, competences and experience of the employees, but also on what kind of equipment is used.
(…) Light industry, textiles. There will be less external investment in such sectors, and some companies will probably look for opportunities to move their activities to other countries,” N. Mačiulis said earlier in the ELTA news agency’s “Business Attitude” program.
Rekvizitai.lt According to data, Sparta Textile currently employs 175 employees. The company’s sales revenue last year amounted to 10.724 million. EUR, net loss – 49.4 thousand. euros.
Metalo str. the premises where “Sparta” production took place until now belong to T. Tumynos’ other company “Trailinga”. It is already known who the new tenants of the premises will be, but according to the businessman, this information is confidential.
2024-08-07 01:11:45