Owners and investors of Morgan Furniture LLC, a Ukraine’s leading manufacturer of upholstered furniture plan to invest UAH 280 mln (EUR 9.3 million) to expand production facilities and additional equipment, which will let the company boost sales by 3.4 times in three years. According to a co-founder of Morgan Furniture LLC Lorraine McMahon, they plan to transform the company into a world-class production facility and become a leading Ukrainian exporter.
A furniture factory, Morgan Furniture LLC, was opened in June 2012, by the McMahon spouses, Lorraine McMahon and Franklin McMahon, on the basis of the Rivnesilmash factory in Kvasyliv, Rivne region, which they acquired. They’ve invested EUR 10.5 million and employed 120 people. Later, the number of employees has increased to 750 people with the average wage of UAH 5,000, which is 43% up on the average monthly wage in Rivne region. Now, with the enterprise growth, the owners plan to increase the number of jobs to 2,100. The company will also ensure a large number of jobs with Ukrainian suppliers.
The company was showing a constant revenue growth, even during the times when Ukrainian economy had the most difficult periods. According to the director of Morgan Furniture LLC Roman Basarab, this year the company’s production is expected at UAH 880 million (UAH 485 million at the end of 2015, which was 39% up on 2014).
The company has entered a large EU market and successfully established relationships with many retail chains. The factory’s products are exported to Great Britain, Germany, France, Austria, Poland, and other European countries. Morgan Furniture LLC success story shows that it is possible to do business in Ukraine.
The abolition of taxes during the procurement of components abroad on January 1, 2016, the simplification of VAT collection and signing the Association Agreement with the EU plays a positive role in business development in Ukraine.
Of course, a lot still has to be done to create better conditions for investors and businesses, and to make Ukraine an attractive country for investments.
Morgan Furniture LLC is part of Home Group SA, registered in Luxembourg. It is a large European manufacturer of household goods. The holding has production facilities in Estonia, Poland and Ukraine and handles export and import operations with 22 countries.
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