Italian hosiery giant Golden Lady is reported to have commenced construction of its third factory in Serbia and its second in the town of Loznica in the western part of the country.

The investment of EUR6m (US$8.6m) brings the company’s total investment in Serbia to over EUR100m since 2005. Golden Lady board member Gaetano Paolillo told just-style.com that building would be completed by the end of this year.

The new factory will make women’s hosiery, 90% of which will be exported worldwide via Golden Lady’s Italian trading offices, with the remaining 10% being sold in Serbia itself. The factory could also produce different kinds of underwear in future, Mr Paolillo said.

Group Golden Lady S.p.A, also produces fine underwear and swimwear and in September 2001, the famous Italian socks manufacturer opened its first factory in Serbia under the name Valy in Popučke near Valjevo.

Golden Lady Group is reported to now have 16 factories: 9 in Italy, 4 in the USA, 3 in Serbia and sells via a network of 450 shops. The company’s Golden Lady, OMSA and SiSi brands are thought to have around 10% of the European market for women’s hosiery.

One of the main reasons for Golden Lady to choose Serbia as the location for its new production investment is its strategic logistics position and strategic role of a link between Central Europe and the emerging markets of Eastern Europe, particularly Russia.

In the mid-2003, the company invested €12 million in the largest hosiery factory in Eastern Europe, in the Valjevo suburb of Belosevac. The factory produces 50 million pairs of socks per year and In both plants, it employs nearly 1000 workers. With continuous investments in new facilities and equipment the company is among the most important textile exporters in Serbia, with the production of socks is for the markets of Serbia, Italy, Ukraine, Germany and former Yugoslavia.

The possibility to import machinery duty-free is also cited as another strategic economic advantage which contributed to the scale of Golden Lady’s investments in Serbia. Other important factors have been a Greenfield financial contribution of nearly €3 million approved by the Serbian Government, relief on corporate taxation and the free trade agreements Serbia enjoys with the Balkan countries and Russia.

Source: just-style.com