Ozurgeti Denim Factory to Officially Open in October
In Georgia’s western region of Guria, the Ozurgeti Denim Factory has launched preliminary operations in testing mode and has hired its first employees – approximately 150 women. The establishment of the factory was first announced in January 2017 when the then-governor of Guria, Gia Salukvadze, met with Pakistani investor Amjad Malik, head of LLC Malik Textile, to discuss the potential for a denim factory in Ozurgeti. A deal to construct a factory was finalized in August of last year with a different company – Turkish textile brand Baykanlar. At that stage, Baykanlar committed to invest 2 million GEL and employ 300 people under the name Ozurgeti Garment.
During the initial planning stage, Salukvadze emphasized the project’s three priorities: “creating new workplaces, maximizing support from investors, and protecting labor rights.”
The Ozurgeti Garment factory will construct jeans for well-known international brands such as Zara, Mango, Massimo Dutti, Bershka, and Esprit.
Speaking to BM.GE, Salukvadze confirmed that the first shipments of jeans have already been exported, and that he was personally involved in the inauguration of the factory. The factory’s official opening date is set for October 2018. At that point, an additional 150 people will be hired to increase the number of employees to a total of 300.
As part of the Enterprise Georgia program, the Government of Georgia gave Ozurgeti Garment 9 m2 of land from what was formerly a tea factory, supported by the LEPL National Agency of State Property of the Ministry of Economy and Sustainable Development of Georgia. The tea factory has not operated for more than 25 years. The state-owned property was valued at approximately 400,000 GEL. As a condition of receiving the property, the investor was obligated to invest at least 1.6 million GEL in the development of the land. Total investment in the denim factory and surrounding territory is expected to reach 25 million GEL, and a main factory building and four auxiliary workshops will be constructed by 2021. Up to 2,000 people are expected to be employed in some capacity by Ozurgeti Garment by the year 2021. Ozurgeti Garment is scheduled to produce at least two million pairs of jeans annually. Enterprise Georgia has supported nearly 300 projects in a variety of industries.
The specific plot of land in the small city of Ozurgeti was carefully selected. The investors from Baykanlar visited several sites throughout Georgia to evaluate what would be best suited for their needs. “We arrived in Georgia a month ago. In Ozurgeti we explored the existing territories, selected the former tea factory territory for opening a clothes factory to sew jeans and export products to various European countries to customers,” said company representatives.
Baykanlar Tekstil is owned by brothers Osman and Erkan Baykan. The company has been operating since 1998, manufacturing a variety of denim clothing products for international brands and under their own brand name, sold in stores in several countries. Regarding their international production, the Baykanlar website explains “Our extensive network for global sourcing and procurement empowers us to produce competitive, qualified and value-added products on time…Each step of our production is carefully observed to assure the required standards of craftsmanship, quality and reliability. We take action to do the right thing and hold responsibility for our decisions, operations and products in the best interest of our customers.”
By Samantha Guthrie
Photo: Baykanlar