BUSINESS
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
03 September, 2018
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September. The factory is located in Kutaisi and has already produced collections for S’Oliver, Comma and Erima. It anticipates exporting 100 percent of all goods produced at the factory to the UK (United Kingdom) and Germany.

The MGMTEX factory opened on the 10th of April, 2018 and up to 3 million GEL has already invested in the factory to date. Half of the investment is funded
by the government program “Produce in Georgia”.
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HQ of M&S. Photo courtesy: e-architect.co.uk

MGMTEX is a subsidiary of the Romanian Ottorose. This company produces goods for famous brands like H&M, Mango, Zara, Coast, Colveta, United Colours of Benneton, Oasis and others. In the Kutaisi factory the company currently produces other goods for companies like Umbro and Second Female.

The director of MGMTEX Elizbar Lominadze says that the biggest problem today in the business is the lack of experienced employees. “There are around 200 employees in the company” – says Lominadze and regrets, that there are people who want to work, but do not have enough qualification and the company has to devote resources and spend approximately 6 months to train them.
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HQ of H&M. Photo courtesy: reflexark.com

Even though the company has signed memorandums with some of the industrial schools who provide them with graduates, this is still a drop in the ocean. “The European companies are interested in Georgia because of two reasons: cheap labor and location – Georgia is close to Europe and transportation of goods is cheap as well” – says Lominadze.

Despite some problems, the company plans to open another factory in 2019. One of the probable locations for this is Tbilisi.

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