 |
| In a garment factory on the outskirts of Tirana, October, 2020 (archive) |
Garment factories in Albania are going through one of the strongest crises they have ever faced during these years of operation in both the Albanian and foreign markets.
The fall of the euro is pushing this sector into collapse, leading entrepreneurs to seek support from the government.
"A small garment factory, employing 50-60 people, has a total expenditure of around 5 million Albanian lek. When the euro was exchanged at 120 lek, 40,000 euros were needed. Today, it requires 50,000 euros. I am facing monthly losses of 10,000 euros. How can these be recovered?" expressed entrepreneur Agron Hyseni.
"I need 5,000 liters of diesel per month for transportation to Italy, for buses and vans for the workers. With 200 lek per liter, calculate the diesel yourself. Now that the euro is 1 to 1, it has become more expensive," stated the administrator of a garment factory in Fushë-Krujë, Muharrem Hoçja.
The departure of many foreign brands to new markets and the drastic reduction of jobs is a phenomenon that has been ongoing for months, followed by a significant decline in "Made in Albania" exports.
Orders in this sector have seen a decline of 20-30 percent.
"The manufacturing sector (clothing and footwear) is in deep collapse. Many jobs are being lost, many foreign brands are leaving Albania, and it's shameful to say that such a sector is closing with the push of a button. At the end of the day, it will be difficult for these people to be absorbed by other sectors," expressed the president of the "Proexport Albania" association, Edvin Prençe.
Gathering on Saturday morning to discuss the issues of their sector, fashion businesses for shoes and clothing are urging the government to bring the issue to the negotiation table to find concrete solutions.
Their demands are clear, and if not heard, Albanian garment manufacturers risk moving their operations outside the country.
"We ask the government only for the euro and diesel. I have 1.5 million euros worth of machinery. I will become like the Italians; I will go to Tunisia or Egypt to work because I am interested, and there the wages are 150 euros, it's more profitable for me to go there," said the administrator of a garment factory in Fushë-Krujë, Muharrem Hoçja.
"If a business like yours is no longer profitable for the state because there are other more interesting businesses at that moment, we will understand that we cannot fight with anyone," said entrepreneur Agron Hyseni.
"The Ministry of Finance unfortunately still has no reaction to a dialogue table, which is very important to find an acceptable solution from all parties to avoid losing these jobs and shutting down production machinery," said the president of the "Proexport Albania" association, Edvin Prençe.
Around 840 businesses throughout Albania with over 75,000 employees operate in the garment sector.
In Durrës alone, there are about 170 garment factories with an average of 70-80 employees.