CASSINA consider transfer of production to Romania
After having carried out reorganisational processes with the aim of reducing fixed costs, Poltrona Frau Group, one of Italy’s leading luxury furniture manufacturers, is presently concentrating on containing purchasing costs and reducing production costs with direct impact on its gross margin. A member of Poltrona Frau Group, Cassina confirmed in a statement to CPP-LUXURY.COM that it is analysing and studying potential suppliers for one phase of the production process – stitching, an area that can be quoted at inferior labour costs. At the moment potential suppliers have been identified, including a Romanian supplier who is currently in the process of analysis and testing for quality, reliability, flexibility, costs and integration with other business processes. On completion of this experimentation, it is Cassina’s aim to create local work conditions in Italy where the company can reduce costs by outsourcing, implementing an organizational solution that conserves work for the District of the employees involved.
According to CPP‘s Oliver Petcu, the choice for Romania is most likely motivated by the country’s high quality manufacturing facilities and highly skilled workforce. Several major international luxury furniture makers already manufacture and outsource to Romania. Cassina’s direct competitor on couches, Natuzzi has been operating for the past 6 years, a major production facility of luxury leather sofas in Baia Mare, North West of Romania .