Part of SCR Group, the most powerful industrial group in Romania, SC Iasitex SA is one of the most enduring of all the companies listed on the Bucharest Stock Exchange with over a century in the woven fabrics and clothing business.
Documented in 1910 as Tesatura Iasi, the factory was nationalized in 1948 after which, during the communist period, was named Intreprinderea de stat Tesatura Iasi. After 1990, in a context where thousands of businesses arise only to disappear a few weeks later, the company is established as a joint stock company, and in 2003 it is privatized by acquiring majority stake by the group SCR. The secret of longevity in the field of industrial production of woven fabrics and clothing is, according to Mr. Gheorghe Dulhai, CEO of Iasitex SA Iasi, the ability to continuously adapt to the ever changing business and market requirements. “Iasitex wanted to be a major player in the industrial fabrics and garments market. It identified the best market niche and created a few teams who shared an experience gained through 100 years of tradition“, adds Mr. Gheorghe Dulhai.
The transition from a centrally planned production, that used mainly manual labour, to a technologically driven market economy, was not easy. “The viability of the company and our place in the market is gained step by step, contract by contract, client by client, which we find by our own“, says the Iasitex CEO. It seems that all the effort was worth, because today Iasitex is truly a European company with an excellent pedigree, more than 90% of its products being exported. One of the most important customers is the giant Swedish company IKEA, whose direct suppliers are Iasitex’s clients. Currently, the raw materials are mostly imported. But this is about to change. “Do not think that we neglect purchases in Romania. We have here business partners of whom we are very satisfied. And, because we want our contribution to Romanian economy’s growth to be as significant as possible, we report a project which, after implementation, will lead to the integration of raw materials from Romania in a proportion of more than 50%. It may not seem much. However, remember that the main raw material we need is cotton and, in Romania, this crop disappeared long ago and never has been competitive”, says Mr. Gheorghe Dulhai.
The Iasi-based company prevailed against the financial problems it had last year. After 2013 marked the first year with losses in the recent history of the company, first half of this year came again with profit. “Positive trends of 2014 are due to reduced manufacturing costs, by redesigning technological flows and investing in projects for optimizing the use of the main utilities (gas and electricity)”, explains Mr. Dulhai. Moreover, in 2015, the company aims to increase its turnover from 1 million to 1.5 million Euro per month and to attract European funding of at least 1,000,000 Euro, which will direct towards increasing production capacities and competitiveness. Also during this period, Iaşitex creates and implements an improved on-line shop, which aims to increase product value by adding certain benefits for end users. According to the Iaşitex CEO, it will be an interactive way in which the client will know all the advantages of the Iaşitex products in real time: “We all know that buying trend is increasingly more via the internet. It’s fast, secure and avoids the less convenient alternative – shopping in the crowded stores from the urban environment”. But Iaşitex aims mostly the B2B market, it’s main customers being economic agents from various industries.“Lately we have developed workwear and PPE items. These products are intended for textile manufactures in Romania and abroad, and end users are the workers in various industries, those who wear overalls or wading jackets”, says the Iaşitex CEO. In 2012-2013, the textile manufacturer attended two international fairs (Textile Baltic in Lithuania and Heimtextil in Frankfurt, Germany), where it established trade relations with some participating companies, but, according to the Iaşitex CEO, with no significant increase in sales volume.
Gheorghe Dulhai – General Manager – Iasitex SA:
Highly complex managerial background SC TESSCONEX SRL Iasi, SC ASAM SA Iasi, SC TE ROX SRL Paşcani, and SC CERSANIT ROMANIA SA are companies in which I invested skills, effort, dedicati on and which gave me satis faction and success. I am part of Iasitex management team since August this year and my main goal is to increase turnover from €1 million to €1.5 million per month in 2015.