Italian knitter invests in Hungary

1 February 2010, Urgnano (BG) - Manifattura Italiana Tessuti Indemagliabili SpA (MITI), an Italian producer of high-quality warp and weft knit fabrics, is investing in additional production capacity in Hungary. The company, which made its name in ladder-free warp knits and stretch fabrics for high performance sportswear opened a new plant in Szentgotthárd (western Hungary) last week, where it intends to expand from 40 to 100 staff.

MITI President Leonardo Polli told local newspaper Napi Gazdaság that the company has invested more than EUR 2 million in the refurbishment of the 4000 square metre production facility to equip it with state-of-the-art machinery. MITI commenced operations in Szentgotthárd about four months ago after it finished relocating production from its Zogno, Italy plant. The company says the main reason for the move was that labour costs in Hungary are lower.

MITI will embark on a new development scheme in Hungary that will not only boost capacity but also expand its product portfolio. The paper said the project is to kick off next year and that MITI may build its own manufacturing unit as it currently only rents the facility from Lurotex, a local unit of Italy's Radici Group.

The main reason why MITI's owners are so upbeat about the future is that they have apparently experienced only a small decline in sportswear sales despite the global economic crisis. The company says it is already seeing demand for its products picking up.

Founded in 1931 MITI SpA was one of the first warp-knitting specialists in Italy and during the last 78 years it has produced many different types of knitted fabrics. In recent times the company has concentrated on high-performance stretch fabrics for active wear. It focuses mainly on the western European market and has around 200 employees.