Bagir Group Ltd Bagir announces Ethiopia manufacturing milestone
November 29 2016 - 2:01AM
RNS Non-Regulatory
TIDMBAGR
Bagir Group Ltd
29 November 2016
29 November 2016
Bagir Group Ltd.
("Bagir" or the "Company")
Bagir announces Ethiopia manufacturing milestone
Bagir (AIM: BAGR), a designer, creator and provider of
innovative tailoring, is pleased to announce the successful
completion of its first international contract from its
manufacturing site in Ethiopia. The first order, which is from the
leading global high street retailer H&M, was for tailored
trousers, and has been completed and shipped to the US. More orders
for other destinations are now in production.
In July this year Bagir announced the restructuring of its
manufacturing facilities to focus on just three production centers
in Vietnam, Egypt and Ethiopia, with the sites in Vietnam and Egypt
fulfilling the majority of the total manufacturing output in the
immediate future and Ethiopia representing an important but
longer-term opportunity for the Company. Ethiopia benefits from
highly competitive production costs, incentives for investors, low
energy costs, proximity to the European market and duty-free export
status for sales to both the EU and USA.
The Company holds a 50% joint venture interest in its site in
Ethiopia, covering 50,000 sqm and employing 450 people. Quality
remains at the heart of what Bagir aspires to and so over the last
18 months Bagir has re-located key members of its management team
to Ethiopia in order to ensure that the garments produced there
meet international quality control standards. This first 'test'
order by H&M demonstrates the high-quality levels of the
garments being produced in Ethiopia as well the potential of
Bagir's manufacturing strategy in Ethiopia.
Eran Itzhak, Bagir CEO said:
"To produce formal trousers for export to the US is an important
milestone achieved for the Ethiopian site. Alongside tariff free
trade and low-production costs, the site has good connectivity for
onward distribution and we are confident Ethiopia will become an
increasingly important part of our manufacturing base as quite
simply it can produce top quality garments for less."
For further information, please contact:
Bagir Group Ltd. via Novella Communications
Eran Itzhak, Chief Executive on:
Officer +44 (0) 20 3151 7008
Udi Cohen, Chief Financial
Officer
Tessa Laws, Non-Executive
Chairman
N+1 Singer
Alex Price
Sandy Ritchie +44 (0) 20 7496 3000
Novella
Tim Robertson
Toby Andrews +44 (0) 20 3151 7008
This information is provided by RNS
The company news service from the London Stock Exchange
END
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