RESHORING CASE

Gta Moda

Company details
Code: 
GTA
Company name: 
Gta Moda
Company country: 
Italy
Number of employees: 
320
Sector: 
C - Manufacturing
Sector detail: 
C14 - Manufacture of wearing apparel
Sub-sectors: 
C14.1 - Manufacture of wearing apparel, except fur apparel
Reshoring details
Reshoring announcement date: 
10/12/2014
Starting implementation date: 
November, 2014
End of Implementation : 
December, 2016
Reshored to: 
Italy
Location of affected unit(s): 
Tencarola
Location code: 
ITD36
Reshored business function: 
Production
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
In house (in own facilities)
Estimated job gains: 
40
Reasons for reshoring: 
"Made in" effect
Automation of production process
Implementation of strategies based on product/process innovation
Case narrative: 

GTA Moda was acquired by Venetwork in 2014. The first move undertaken by the new management was the backshoring of part of production from Romania to Italy, despite higher labour costs (total costs in Italy are estimated to be 50% higher than in Romania). The backshoring aims to enhance quality as well as to preserve the "Made in Italy" image of the company.
In order to be economically sustainable, production in Italy needs to be organized into lean processes. Only 40 employees will be involved in the Tencarola plant in Italy following a €1 million investment. The company employs 300 workers in Romania.

 

Sources: 

Il Mattino, 16 February 2016 

Sources link: 

http://espresso.repubblica.it/affari/2014/12/10/news/torna-a-casa-aziend...
Il Mattino, 16 February 2016  

Offshoring details
Offshoring location: 
Romania
Offshored business function: 
Production
Reason for offshoring: 
Labour costs
Host country geographical area: 
Eastern Europe