New factory in Georgia’s Kutaisi city produces clothing for H&M

Men and women’s clothing of Swedish fashion retailer H&M will be made in Georgia’s western city of Kutaisi at a newly opened clothing manufacturing enterprise MGMtex.

MGMtex was created by Georgian-Romanian investment where in total 7 million GEL (about $2.81m/€2.38m*) was invested.

The enterprise was opened yesterday with the support of state agency ‘Produce in Georgia’. State support allowed the company to purchase the sewing machines of latest technology.

Representatives of the MGMtext are now negotiating with Zara and United Colors of Benetton. Photo: Georgia's Ministry of Economy. 

The enterprise will be oriented on export and produce high-quality products manufactured in compliance with the latest European technology.

We are in the state-supported enterprise that will start production of the H&M products from today and production for Zara and Benetton is under negotiations", said Georgia’s Economy Minister Dimitry Kumsishvili, who yesterday attended the enterprise opening ceremony.

Such projects are of principle importance because mostly women are employed here, and this is the company whose products are mainly exported, which will be very helpful to increase Georgia’s export potential”, he added. 

Georgia's Economy Minister Dimitry Kumsishvili visiting the enterprise. Photo: Georgia's Ministry of Economy.

Representatives of the MGMtext reported that the enterprise will be able to produce clothes of 6 million GEL (about $2.41m/€2.04m*) annually.

The company employs 130 people at the first stage while in two months the enterprise will reach its full capacity and the number of employees will be increased to 250 people. The company plans to employ another 400 people within the next year.

To note, H&M opened its debut store in Georgia last year.