Natuzzi factory to relocate
Italian leather furniture brand Natuzzi has signed a nearly $64 million indemnity agreement with the Chinese government to relocate one of its factories in China into a new zone within Shanghai.
The government had asked the company to relocate the factory, and negotiations between the two parties began in mid-2009.
During last year, the Natuzzi Group has completed the construction of the 88,000 square-metre factory in the Minhang Export Processing Zone in Shanghai. The move will allow the company to shift production by May 2011 and to consolidate all production into one factory in the future.
“The negotiation with the Chinese authorities to relocate our factory in a new site has been undoubtedly long and tough, but at the same time correct and transparent,” said Pasquale Natuzzi, chairman and CEO. “I am pleased of the positive conclusion and I thank the Chinese authorities with which we have created a respectful and collaborative relationship during the last years.”
