Natuzzi S.p.A. (NYSE:NTZ), Italy’s largest furniture manufacturer and world’s leading manufacturer of leather-upholstered furniture, announced the signature of an agreement with the Chinese Government to be indemnified, after a request for relocation of one of its Chinese Natuzzi factories into a new zone within the Shanghai district.
The Chinese Government had asked Natuzzi S.p.A. to move one of its factories. The negotiation, for both relocation and compensation, started mid 2009.
The Natuzzi Group, during last year, has completed the construction of the new factory of about 88.000 SQM – twice the size of its previous one - in an area known as “Minhang Export Processing Zone” in Shanghai. This will permit the foreseen production shift by May 2011, and to group in the new factory the entire Chinese Natuzzi production within the next future.
The total indemnity is of 420 million Chinese Yuan (approximately € 46 million at the today exchange rate). The payment will be done by May 2011.
Pasquale Natuzzi, Chairman and CEO of Natuzzi S.p.A., commented:
“The negotiation with the Chinese Authority to relocate our factory in a new site, has been undoubtedly long and tough, but at the same time correct and transparent. I am pleased of the positive conclusion and I thank the Chinese Authority with which we have created respectful and collaborative relationship during the last years”.
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs and manufactures a broad collection of residential upholstered furniture. With consolidated revenues of EUR 515.4 million in 2009, Natuzzi is Italy's largest furniture manufacturer. Natuzzi Group exports its innovative high-quality sofas and armchairs to 130 markets on five continents under two brands, Natuzzi and Italsofa. Cutting-edge design, superior Italian craftsmanship and advanced, vertically integrated manufacturing operations underpin the Company's market leadership. Natuzzi S.p.A. has been listed on the New York Stock Exchange since May 1993. The Company is ISO 9001 and 14001