LONDON (Alliance News) - Bagir Group Ltd on Tuesday said it has completed its first international order from its manufacturing site in Ethiopia, with more orders currently in production.
The tailor said its first order was from high-street retailer H&M Hennes & Mauritz AB and was for tailored trousers. This order has been completed and shipped to the US, Bagir said.
Bagir earlier this year said it was restructuring its manufacturing facilities to focus on three production centres, in Vietnam, Egypt and Ethiopia, with Vietnam and Egypt to fulfill the majority of the total manufacturing output in the immediate future.
However, Bagir had said Ethiopia represented an important longer-term opportunity in that it benefits from highly competitive production costs, low energy costs, a close proximity to the European market and duty-free export status for sales to both the US and EU.
Bagir holds a 50% joint venture interest in the site in Ethiopia, which covers 50,000 square metres and employs 450 people.
"To produce formal trousers for export to the US is an important milestone achieved for the Ethiopian site," said Chief Executive Eran Itzhak.
"Alongside tariff free trade and low-production costs, the site has good connectivity for onward distribution, and we are confident Ethiopia will become an increasingly important part of our manufacturing base as quite simply it can produce top-quality garments for less," Itzhak said.
Shares in Bagir were up 6.7% at 4.00 pence on Tuesday following the news.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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