Algemene Expands to Keep Pace With Demand For Upper End

December 12, 2000

Belgian Mill Plans to Reduce Delivery Time and Add Flexibility to Manufacturing Operations

Ledegem, Belgium — Algemene is expanding its manufacturing base here in order to reduce long waits for its heavyweight woven chenilles and jacquards in the $25-$30 price range.

Algemene's expansion comes as the result of doubling sales in the past five years to $25 million. The company has invested $8 million in plant and equipment.

While Luc Callens, sales and marketing consultant to Algemene, cited a general slowdown for the upholstery industry in October, it had not affected Algemene. "We have plenty of room for more growth," he said.

To illustrate his point, Callens said Algemene had more than 120 placements at the recent furniture market in High Point, NC.

"Algemene has 2,500 customers in 62 countries but delivery time is now 14 weeks. By January, we expect to reduce this time to 10 weeks and to eight weeks by March," said Callens.

"Our customers will be happy with this expansion," said Andrew Purcell, principal of Purcell Letchinger Group, Algemene's U.S. sales representative. "Our business continues to grow with Algemene and delivery improvements will make a big difference for our U.S. customers."

The capacity increase will take the form of 16 new Somet looms with Staubli heads in single widths for jacquard upholstery production, which will replace 10-year-old looms currently in place. The new looms will occupy the existing factory but a new plant of 35,000 square feet is being built next door for warping, winding and finishing. The new looms will run at 450-500 picks per minute, 35-40% faster. "The weft yarns are handled better by these new looms by offering better tension control for the different thickness of yarns that we use," said Emmanuel De Spiegeleir, general manager of Algemene. "Ultimately, there will be more automation and less handling in our plant."

In two to three years, Algemene also expects to build new offices and showrooms at the facility.

The new production is expected to be more flexible with the ability to change the patterns quickly every 50 meters, Callens noted.

Algemene produces 800 designs annually in 10,000 different SKUs, Callens explained. Sabine Vermeersch is the head designer for Algemene. "We make ageless designs that sell well all of the time," Callens said. "We must guarantee our customers five to ten year life on each item in our line."

This will be especially advantageous to Algemene, which offers one-piece order minimums to the wholesaler and furniture manufacturer.

"Our chenilles are selling well, especially in the U.S.A.," said Callens. We used to be velvet weavers and now velvet is coming back. About 10% of our line was in velvets and now it has grown to 15%," said Callens. About two years ago, Algemene purchased six looms for the production of Epingle and face-to-face velvets.

Algemene is owned by Stefaan Verstraete who is also the principal for Verstraete & Verbauwede (V&V) a producer of velvets for the furniture and caravan industry as well as finished rugs.


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