Pressmeddelande

ECCO has obtained permission to build shoe factory in China

Ecco

2005-01-10 14:55
ECCO has obtained permission from the Chinese authorities to build a shoe factory in XIAMEN in South East China.

This comes after 12 months of investigations and negotiations.

The factory will be built in stages over a period of 5 years. The building activities for stage one will commence in August 2004, and the first production hall incl. service facilities will be ready during March 2005 with production start-up scheduled for April 2005.

This first unit will have a capacity of 1 million pairs of shoes. The other units will be built as replicas of this first one. The concept is that each unit is a fully independent, fully integrated mini-factory. Each mini-factory houses the entire process from leather cutting to finished product. This should provide maximum efficiency.

The construction of unit two will start when the first unit has been built and production commenced.

Production volume in 2005, 2006 and 2007 will mainly correspond to the expected growth in ECCO’s sales.

The new factory will incorporate all of ECCO’s experience gained from our other production operations.

Group Technical Adviser Flemming Brønd is heading up the project supported by a team of Danish, Chinese and international employees and advisers.

ECCO has entered into an agreement with NNE, a firm of contractors within the Novo Nordisk group, on assisting ECCO with consultancy and construction management. NNE has been present in China for many years and built a number of factories.

An HQ steering committee with President Dieter Kasprzak as chairman is monitoring the project.

Production from the first factory will be exported from China to ECCO’s international markets. This is also the intention as regards factory unit No 2.

Then it is planned to build a third unit to service the growing Chinese home market while exporting part of the production.

ECCO also applied for permission to build a tannery in China. The Chinese are very environmentally conscious and have in recent years introduced strict legislation. Therefore, they were sceptical at first. ECCO decided to invite a delegation from Xiamen to visit ECCO’s tanneries in Thailand and Holland. When the Chinese specialists saw how far ahead ECCO was within the environmental area, the attitude changed completely, and since then they have been very interested in having an ECCO tannery in China. The permit was obtained in record time, when ECCO applied.

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