Bulgarian Cosmetic Manufacturer to Outsource in Ukraine

Business | April 15, 2008, Tuesday // 00:00| Views: | Comments: 1
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"Alen Mak", the oldest Bulgarian cosmetic company has made the decision to move its production to the Ukraine. The news was announced by company's representatives, as reported regal.bg.

The main reason for the outsourcing to Kiev is the fact that in the last few years the majority of "Alen Mak" sales are in the Ukraine. Those sales form 30% of the company's total profits for 2007. Alen Mak's own production in Kiev will help the company avoid the high custom fees, charges and taxes which raise the company's production costs.

At the moment "Alen Mak" exports 60% of its production to the Ukraine and Russia with an additional 20% to the other countries of the former Soviet Union. By outsourcing its production the company hopes to be able to reclaim most of its old markets in the area.

According to Mr. Petar Terziev, Manager of the association owner of "Alen Mak", the company has leased spaces and facilities in Kiev to manufacture shampoos, conditioners and washing liquids. "Alen Mak" has already being registered in the Ukraine as a manufacturing company and has a contract with a local plant. The plant will use its maximum yearly capacity of 3.5 M boxes of hair colour and 250 M packages of shampoos and conditioners while the first finished products are expected in several weeks. "Alen Mak" has not yet disclosed the name of the plant.

As noted by Mr. Terziev, the company is moving the liquid products manufacturing to Kiev because it requires the use of plenty of water. Water is a cheap resource while its transportation as a finished product requires significant and unnecessary expenses.
The toothpaste production with its unique line as well as all other products from the company's portfolio that are intended for the Bulgarian market will remain in Plovdiv.

"Alen Mak" is the second Bulgarian cosmetic company outsourcing its production abroad. In the summer of 2004, the cosmetic manufacturer from Gabrovo, known as STS built a plant in the town of Solnichnogorsk near Moscow. The plant has the monthly production capacity of 4.8 M toothpastes, 1 M moisturizers, shampoos and others.
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» To the forumComments (1)
#1
Stealthy - 21 Apr 2008 // 13:20:45

as said , these shit products will never be in demand in the West ... poor Ukrainians ...

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