Economy, Business And Markets

Italy Mulls JV in Garment Production

Italy Mulls JV in Garment ProductionItaly Mulls JV in Garment Production

Italian companies are planning to build a stronger presence in Iran by setting up joint ventures with Tehran Garment Union, says the chairman of the National Textiles and Fashion Association Sistema Moda Italia (SMI).

“These joint companies will produce clothes of reasonable prices and high quality. Also, their products will be exported to the Middle Eastern market and Cauccaus region. In other words, Iran will become our economic hub,” Claudio Marenzi told ILNA in an interview.

Referring to the high production costs in Italy, Marenzi said worker’s wage in Italy is five times and taxes are twice those in Iran, adding that low prices of raw materials and fuel make Iran an ideal place for production.

“Besides that, Italian fashion houses Prada, Giorgio Armani and Dolce & Gabbana will also sell their products in Iran. Iranians buy an average of €5 billion designer clothes on a yearly basis, but they mostly make their purchases through a third country. We are willing to provide for what they want firsthand. These value-added products and their retailing process would help create jobs to boot,” he said.

Marenzi noted that Italy is the only country in Europe where all stages of production, from making thread to the final product, are handled within the country, adding that his association has an annual turnover of more than €50 billion.