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The company Benetton is moving part of its production to Serbia

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Italian company Benetton is working to expand production in Serbia, Croatia, Turkey, Tunisia and Egypt and plans to halve its capacity in Asia by the end of next year, the company’s chief executive Massimo Renon told Reuters.
“It is a strategic decision to increase control over the production process, as well as transport costs,” he said, adding that the group had already moved more than 10 percent of production from countries such as Bangladesh, Vietnam, China and India this year.
According to him, this decision is also affected by problems with transportation costs, since “shipping goods, which used to cost 1,200-1,500 dollars, can now cost 10,000-15,000 dollars, and the delivery date is uncertain.”
The tenfold jump in shipping costs was caused by a shortage of available ships, as many were docked during the pandemic, as well as growing customer demand, added Renon, whose company makes most of its revenue in Europe but shifted production to cheaper labor countries in the early 2000s.
Although production costs in Vietnam and Bangladesh are still 20 percent lower than in Mediterranean countries, this advantage is erased by the lack of ships and longer delivery times.
“Due to the shortage of ships, the average delivery time from Asia has increased from the previous four to five months to today’s seven to eight months,” says Renon.
When it comes to woolen clothes that Benetton produces in Serbia and Croatia, the delivery time can last only four to five weeks. The company therefore plans to increase production in the two countries, as well as in Tunisia, and to expand cooperation with suppliers in Egypt and Turkey, according to the British agency, BizLife reports.

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