Natuzzi, Chinese Government Reach Agreement on Relocation

January 25, 2011  by in UnCategorized   

By Home Furnishings Business in Business Strategy on January 26, 2011 Leather upholstery supplier 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.

The Natuzzi Group, during last year, has completed the construction of the 88,000-square-meter factory in the Minhang Export Processing Zone in Shanghai. The  move will allow the company to shift production by May and to consolidate all production into one factory in the future.

The required payment will be done in May.

"The negotiation with the Chinese Authority 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 Authority with which we have created respectful and collaborative relationship during the last years."