CEO of Tigina: Russian loans are a chance to launch a new round of production

06/04/17 21:15

CEO of Tigina: Russian loans are a chance to launch a new round of production

The company wants to use them to adopt new technologies and return to the pre-crisis production volumes
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Tiraspol, 4 June. /Novosti Pridnestrovya/. Russian loans may not only give a new impetus to the work of the Tigina factory, but also will help it to reach a new level. This Bendery-based footwear manufacturer is among the companies that have submitted their investment projects to the government.

According to Tigina's CEO Tatyana Sorokina, the most important benefit the factory may get is the opportunity to diversify production, to manufacture a larger variety of footwear for various categories of buyers. The factory was able to quickly meet market demands.

«We have made a decision to split out production into more distinct and various lineups of shoes, to diverse it. This will help us to be more competitive and flexible in the market, that is, to offer our customers more diversified products at different prices for various ages and purposes," she explained.

Partially, this idea is already being realised — work under the German trademark Romika has already brought fame in the main market: sales have grown by five times over the past three seasons.

And with affordable and cheap Russian loans, the factory could increase production and sales twofold — from 280,000 to 600,000 pairs of shoes a year. This is the pre-crisis level and the goal of the investment plan implementation. But it is impossible to achieve such results with the existing capacities as the equipment is too old and cumbersome, which makes it impossible to produce inexpensive and competitive shoes.

«It is not profitable now. We can't lower the cost of production with such performance. This means we will not be able to offer our customers a decent price," says the CEO.

The price is only one parameter to win a market. Another one is quality. Russian loans would allow the factory to purchase new equipment and work in line with the latest trends of the footwear industry.

«We want to buy new equipment to increase productivity and manufacture better shoes. This new machines will enable us to produce more high-quality shoes and meet our new standards," she said.

According to Sorokina, with the development of technologies the concept of «quality footwear» slightly changes its meaning, becoming a more complex process.

«This includes the use of more technological materials, comfortable plates and moulded insoles. Modern-day insoles have a foot-memory. Besides, it is the use of better hides. It is also the use of linings preventing shoes from getting wet. In general, modern technologies can offer a lot to make our life more convenient," notes Tatyana Sorokina.

Only robotic lines can produce such products. It is the smart machines that can cut the material better, process work pieces and perform other technological processes.

«What we need is modern technology. It was just a beginning some five years ago. I want to say we are prepared to work on this equipment. It the employs the fashion software our specialists already work with," says the CEO.

To implement all these plans, Tigina requires loans for new equipment and increased working capital (procurement of raw materials, components, etc.). The factory's management is not worried about market outlets.

«We are not worried at all about markets. We consider Russia to be our main market, and it is very large. According to the latest statistics, it consumes 3.26 billion pairs of shoes, which is why we are sure to sell the projected 600,000 pairs," Tatyana Sorokina believes.

 

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