RESHORING CASE

Custom

Company details
Code: 
Custom
Company name: 
Custom SpA
Company country: 
Italy
Number of employees: 
300
Sector: 
C - Manufacturing
Sector detail: 
C18 - Printing and reproduction of recorded media
Sub-sectors: 
C18.1.2 - Other printing
Reshoring details
Reshoring announcement date: 
08/01/2017
Starting implementation date: 
June, 2017
End of Implementation : 
December, 2020
Reshored to: 
Romania
Reshored business function: 
Production
Reasons for reshoring: 
Change in total costs of sourcing
Poor quality of offshored production
Case narrative: 

Custom is an Italian group of companies involved in the production of cash machines, ticket issuers, and bills. Currently, the company's high-end products are produced in Glimboca, romanie, while the production of the rest of products takes place in China. The factory in Glimboca employs 70 employees and about 30 employees work for the companies Custom has outsourced parts of its production. The company aims to transfer its production activities in China to Romania.The general director of the Romanian subsidiary claims that even if the cost of production is higher in Romania than in China, it is worth paying a difference to obtain a better quality. The Glimboca factory already uses 40% of raw material produced in Romania. The increase of production in Romania to substitute the Chinese production appears not to be a short term plan, and no implementation date has been given.

Sources: 

Ziarul Financiar, 06/12/2017

Offshoring details
Offshoring location: 
China
Offshored business function: 
Production