Michael Brandhuber, the general manager and main shareholder in Sortilemn, the Gherla-based furniture manufacturer, says customers are increasingly interested in quality.
"What''s important for us is to remain competitive on the market we already operate in, and not to expand in other directions. I do not want to open a chain of stores or build blocks of flats. We only operate in the furniture production sector and we will stick to that because we want to be very good at it".
"To this end, our objective is to produce furniture items that are as complex as possible, which should not compete on a market filled by Chinese products," says Brandhuber. "Manufacturing simple chairs, for instance, is not difficult, but the market we operate on is discerning and besides prices, customers are also taking into account the quality of materials used, the structure and delivery terms. At this moment, furniture producers'' chances reside in product added value".
In fact, this has been his strategy since he took over Sortilemn, in 1999. At the moment it was privatised, the company operated in various sectors.
"Sortilemn had a thermoelectric power station, a particleboard plant, a factory making chairs, veneer and plywood products operate successively. Gradually though, we have focused on moulded and massive products, and we currently manufacture finished furniture products. From very simple products, we are now manufacturing a very complex product range, using combinations of materials and wood with metal and cloth," the Sortilemn general manager also says.
For this year, the Gherla-based furniture producer has earmarked investments of around 1.5 million euros, aimed at infrastructure, repairs, reconditioning and retooling. Sortilemn in 2005 registered a turnover worth 25 million euros, 20% higher year-on-year. "For this year, we forecast turnover will reach around 27 million euros, accounting for more moderate growth compared with previous years, especially due to the investment we are carrying out. At the same time, we expect a similar increase in 2007, by up to 10%," adds Brandhuber. He considers there are expansion opportunities on the market.
Like all exporters, Sortilemn was last year harmed by the depreciation of euro. Brandhuber considers that boosting business efficiency and raising production levels are decisive factors in countering the growth of the domestic currency against the euro.
Sortilemn is one of the biggest domestic producers and exporters of furniture made from moulded materials combined with massive wood, metal and cloth. Sortilemn was privatised in 1999. At present, the firm is privately owned, with Michael Brandhuber as the majority shareholder (with a 65% stake).
Sortilemn Romania
* Was privatised in 1999 and its current majority shareholder is general manager Michael Brandhuber with a 65% stake
* In 2005 derived turnover worth around 25 million euros, 20% higher than in 2004
* For this year expects turnover of approximately around 27 million euros, accounting for a more moderate growth compared with previous years
* Has earmarked investments of around 1.5 million euros, aimed at infrastructure, repairs, reconditioning and retooling for this year
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
