Milano Finanza – Coronet opens in Vietnam
The 33.5 million company, leader in synthetic leather for fashion, invests 20 million in the plant.
Having closed the chapter of corporate restructuring after the losses of the four-year period 2008-2012, the Italian Coronet group looks forward to 2015 with optimism and launches an important industrial initiative. The company specializing in the production of synthetic leather, a protagonist for this market in supplying fashion, clothing and footwear companies (but as always by contract, suppliers cannot name customer brands) has in fact set up a 2014 in positive, with a growth in consolidated revenues of 24% to 33.5 million euros, against an EBITDA of 10%, and in the meantime it has cut the ribbon at a new maxi plant in Vietnam which, as in the case of the China, inaugurated in 2005, will sell directly to the footwear brands especially in the medium-high segment (with a price tag of 70 to 150 dollars), which have for some time relocated part of their production to Southeast Asia.
The new structure, a project worth 20 million dollars (about 18 million euros) “totally self-financed”, as the company specifies, consists of a first building of 15 thousand square meters just inaugurated, to be followed in September 2016 , a further construction for a total of 30 thousand square meters, located in the Giao Long Industrial Park, which enjoys a 10-year tax exemption.
“The business plan”, Umberto De Marco, President of Coronet, explained to MFF, “expects the Vietnamese company to go into profit as early as 2016 and the return on investment is estimated for 2022”. Coronet Vietnam, located 100 km south of Ho Chi Minh City, will have a production capacity of about 30 million square meters per year, which will increase to 40 by the end of 2016. Just as Coronet China will handle the finishing processes, while the main product of the synthetic leather produced in the oriental operating units, will continue to be made by Coronet Italia.
“Both companies, Vietnam and China, sell directly to shoe factories and bag manufacturers who have their sites in Asia” concluded De Marco, “all of these shoes and bags are then exported, mainly to the USA”.
© Milena Bello