Iasitex’s business in Q1 saved by Ikea contracts

“We registered a 15 percent drop in the first three months of this year, as the volume of orders declined due to the crisis. However, luckily for us, demand leveled off at 70 percent of last year’s level and this is a very good thing for us, considering the current market conditions,” Gheorghe Caescu, Iasitex’s General Manager, told Business Standard.

According to the company official, one of the factors which helped the enterprise to weather the crisis was the fact that the Ikea furniture retailer is one of its main clients.

Unlike Iasitex, other local producers are facing a dramatic drop in the number of orders, as clients are opting for other suppliers, especially based in Asia.

“Things are going pretty badly, because many clients have relocated their autumn-winter 2009-2010 programs to countries such as Tunisia and Vietnam. We are dealing with a massive decline of over 30 percent in orders,” said Anca Nisioi, General Manager of Braiconf.

Iasitex registered some €13.6 mln in net sales in 2008, down almost 40 percent compared to the previous year. Company officials expect business to rise by some 10 percent in 2009. The producer’s Commercial Manager, Doina Cilibiu, said that the local textile market is expected to target ecological and inexpensive products in 2009.