Luxury brand Louis Vuitton Moet Hennessy, with its factories in Avrig and Cisnadie, Sibiu county, is one of the biggest exporters of Romania. Here, the French company does not produce his famous bags, but their components, such as belts or pockets.
The factories are operated by subsidiary Somarest, which, according to National Statistics Institute (INS) data, quoted by Ziarul Financiar, appears in the top 500 largest Romanian exporters, digi24.ro informs. The bags’ pieces produced on domestic market are assembled abroad and some of them are returning to Romania as a finished product. Just like automotive, luxury industry also produces here subassemblies. This means that the added value is lower.
Louis Vuitton’s factories in Sibiu have earned over EUR 15 million in 2013 and had a profit of over EUR 1 million. On the same time, the store that the company has inside five-star Marriott hotel cashed EUR 20 million from Romanian customers, money that most likely left the country.
However, in 2012, the two factories have had higher revenues, EUR 20 million, and a larger number of employees, 800, compared to 650 in 2013.