Samsonite looks to Hungary for increased production
Luxury luggage maker Samsonite is looking to increase production and meet rising demand with a new factory in Hungary. The company said that strong financial performance so far this year and ever-increasing numbers of passengers have necessitated the expansion in production capacity. Management claims that the factory, which opened in September, will increase production by as much as 17%, contributing 1.2 million items in 2017, and 1.4 million in 2018.
Samsonite’s share price has appreciated by 51% year to date
SOURCE: Yahoo Finance
Interim financial results released last month show that Samsonite’s business is performing well – the company saw a 7% increase in net sales over the first nine months of 2017.
The Hungary plant will be the company’s third European factory – something Samsonite bosses claim is important to the brand. The “Made in Europe” label has prestige around the world, evoking trust regarding “quality standards, security, environmentally-friendly credentials, and fair working conditions.”
The company also says that the Hungary plant is well equipped to build the kind of luggage modern day travellers require. Samsonite’s quality manager for the Hardside segment of Samsonite Europe, Lieve Beelen, said:
“Nowadays we travel more frequently than ever before to more remote locations, seeking adventure and unforgettable experiences. When we go on a city-break, our cabin luggage is taken with us on metro and train rides. So the suitcases that accompany us on our trips need to be more resistant to all these changing circumstances.”
He added that luggage needs to be stronger and lighter than ever before to meet customers’ evolving preferences:
“So we have managed to combine both features in a single suitcase through constant innovation, new technologies and extensive testing. This constant balance between strength and lightness has become one of our main challenges and areas of expertise. I am proud to say we have reached the best possible level when it comes to lightness that is still affordable for the end consumer at this moment.”
Dominion holds Samsonite in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.