Embroidery Technology Leads Borfil's Drive Into Export Markets

January 5, 2001

Guimarães (Portugal) — With some of the most up-to-date embroidery technology anywhere in Europe, bedlinen producer Borfil has increased turnover tenfold in just six years. Virtually all this growth has been in exports.

Today, the domestic market accounts for only 1% of sales — a far cry from 1982 when the company was formed to supply the local trade.

The change in the mid-1990s was total, and technology has played a big part in this turnaround. Two Saurer 3040 embroidery machines were installed and a third, the latest Unica model also from Saurer, was purchased in mid-2000, giving 50% more capacity.

This latest embroidery unit is the only machine of its kind in Portugal and one of just four anywhere in the world. Borfil also claims to be the only factory in Portugal with a sample embroidery machine (160 cm wide). This gives the company the ability to produce ready-made samples in just a couple of hours.

Continuous development has also been made in terms of design, and Borfil now has its own design studio, complete with the latest EmNet Plus One CAD/CAM, also from Saurer. Print designs are bought in and these are combined with the company's own embroidery skills and expertise.

Borfil operates at the middle-top end of the market, principally in the U.K., the Netherlands, Germany, Scandinavia and Spain. Turnover in 2000 is estimated at $10.5 million. Much of the recent sales growth can be attributed to its dynamic director, Carlos Carvalho, who has led the export drive. "Borfil's strengths are product quality, design and service," he said. "We are very strict on delivery dates and quality control."

Borfil has begun to focus on exporting to the U.S.A. "We are still studying the market," Carvalho explained. "We have production capacity for the U.S.A., but it is not easy to find the right partnerships, and the correct structures are not yet in place. We are taking it step by step."

Borfil believes the main trend in the bedroom is the combination of bedlinen with other home textiles such as ready-made curtains, towels, carpets and even decorative items such as ceramics.

The company says colors for next spring will be very light, generally soft pastels such as lilac, with white grounds coming back. These light shades will be combined with acid greens and oranges as contrasts.

"Gray is still fashionable, at least for autumn/winter," said Carvalho, who added that the U.S. is leading the market in terms of bedroom trends.

Carvalho said the company's buying department makes contracts for raw materials for the first 8-9 months of the year, which allows Borfil to keep prices steady, at least for the first three quarters. He admitted that the plan was to stabilize production for Europe, then to move farther afield, beginning with the U.S.A. and then perhaps other South American countries. "We have room to grow, with 30-35% of our total capacity still to be fully utilized," said Carvalho. "We would like to sell most of this capacity to the U.S.A., so that this market could account for around 20% of production within three to five years.

"In the meantime, we can occupy much of this capacity for Europe. There are still some large potential customers with big names in the market."

Carvalho said Borfil's meteoric success was due to the investment made in the factory, including machinery and equipment, buildings and people as well as market development. "We have created a good infrastructure that can fulfill customers' requirements. And all our customers are visited personally at least 2-3 times a year," he added. "With the opening of world markets in 2005, companies like Borfil, with their emphasis on design, value, quality and service, will survive. We have the capacity and the market has the capacity to grow, with consumers more and more seeking added value."

• Borfil - Empresa de Bordados SA, Lugar de Pisca - Creixomil, Apartado 150, 4801-910 Guimarães, Portugal. Tel: + 351 253 424580. Fax: + 351 253 419754. E-mail: borfil.com@ mail.telepac.pt. Heimtextil Hall 4.0 Stand G08.


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