17 - 23 August 2000

Jon David set to export Armani suits to Australia

by Franco Aloisio

The Maltese textile company Jon David Ltd is set to start exporting Giorgio Armani suits to Australia for the first time ever, Jon David's chairman Sam Farrugia told The Malta Business Weekly.

Jon David holds the licence to make Armani suits and Dunhill clothing. Mr Farrugia said that in the coming days, the company is expected to receive its first orders from Australia.

Mr Farrugia said the company has recently returned from a trade mission to Australia, organised by Metco. During their visit, Jon David and a delegation of other Maltese manufacturers sought alliances with Australian companies that are willing to operate in European and North African markets.

Mr Farrugia said the Armani branding and the reputation of Jon David have helped the company establish itself in Australia, and penetrate this new market..

Australian newspaper The Australian reported that Jon David can take advantage of the island's favourable exchange rates, advanced manufacturing technology and access to competitive labour rates to produce premium clothing.

The Australian said the Maltese companies held several meetings with the Victorian Chamber of Commerce and Industry in Melbourne. The newspaper said that the Maltese firms claimed that Malta's association agreement with the European Union enables most Maltese-made products to freely enter European markets.

Metco's general manager Stephen Sultana was quoted saying that Malta's imminent entry into the EU and its position next to the North African market makes it well-positioned to facilitate trade in petrochemical, textile and automotive markets.

"The Mediterranean island, with a population of just 400,000, has a skilled workforce at the shop floor level, and in management. The major appeal is "our technical ability and the managerial ability of our workforce"," Mr Sultana said.

The Australian said Maltese manufacturing and services sector is dominated by small to medium enterprises, whose strength relies on flexibility, short response times and the adoption of European quality standards.

Because exports make up 52 per cent of Malta's gross domestic product, Malta has set up a custom-free zone in the south of the island, the Australian newspaper reported. It added that to date more than 250 foreign companies have chosen to operate in Malta.

While tourism makes up 18.3 per cent of the island's total GDP, manufacturing is growing, and now represents 20.9 per cent. In the past 10 years, average annual export growth in manufactured goods has been in the region of 10.7 per cent, compared with the European average of 7.9 per cent for the same period, The Australian said.