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BIZCHINA / Overseas Investment |
Luxottica plans more investmentBy Zhan Lisheng (China Daily)
Updated: 2007-11-15 06:51 DONGGUAN, Guangdong: Luxottica Group is planning to increase its investments in China, because it is confident in its manufacturing base's production capability. The Italy-based company is a global leader in eyewear and had set up its only manufacturing base outside Italy in the Pearl River Delta city of Dongguan. "We are proud of the quality level of our manufacturing base in Dongguan," CEO Andrea Guerra said in an interview during the celebration of the 10th anniversary of the founding of Luxottica Tristar (Dongguan) Optical Co Ltd. "And we believe in the massive market potential in China. We will continue our investment strategy for China in both sectors." He said that Luxottica's budgeted investment in China would surpass 10 million euros in 2008. "On the one hand, we will increase capital inputs for the production expansion, development of human resources, design and technological revamp in the Dongguan base by 8.5 million euros," he said. "On the other, we will set up 25 to 30 new stores under the premium retail brand LensCrafters." He said that the Dongguan manufacturing base is a cornerstone of the group's manufacturing capacity, and its annual production output accounts for 25 percent of the total. Luxottica has invested about 73 million euros in the Dongguan base in the past decade. The excellence of the supply chain, engineers and human resources is more important than cheap labor to the firm's long-term investment strategy in China, he added. The China market has become an important engine driving the group's business growth, he said. According to the CEO, the firm's retail business in China is expected to reach 75 million euros this year, and the target set for 2008 is more than 100 million euros. "China has a very huge market for premium eyewear, and Luxottica aims to set up 1,000 retail outlets in the coming five years," he said. (China Daily 11/15/2007 page14) |
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