The manufacturer of upholstered furniture Morgan Furniture LLC (Kvasyliv, Rivne region) plans to launch a line for the production of foam rubber with a capacity of 24,000 tonnes per year in August 2021, investments in the creation of which amount to $4 million, said head of Rivne Regional State Administration Vitaliy Koval.
“Already in August, the international company Morgan Furniture is launching a foam rubber production line. Development and prospects were discussed today at a meeting with co-owner [of Morgan Furniture] Franklin McMahon and director Roman Basarab. They plan to increase production capacity and triple production volumes,” Koval wrote on Facebook on Tuesday.
He recalled that the company has been operating for nine years, daily exporting 1,000 sofas, beds and other upholstered furniture and providing jobs for more than 1,000 employees.
“The launch of the foam rubber line will not only create new jobs, but also reduce the cost of production. After all, they had to buy this material from the monopolist and spend additional funds on logistics. Now the enterprise will have a closed furniture production cycle,” the head of the Regional State Administration said.
According to him, with McMahon they also discussed the formation of a furniture cluster – one of the main priorities for the development of Rivne region.
“And Morgan Furniture cannot only join the merger, but also take 1-1.5% of the European furniture market, creating a competitive environment,” said Koval.
“Our common task is to grow faster than the market. As a result, we will increase the region’s share in the national production of furniture products, which will allow us to attract additional resources, create jobs and attract new investors,” the head of the region said.
As reported, in June 2012, the McMahon spouses opened a furniture factory, Morgan Furniture LLC, on the basis of the Rivnesilmash plant, which they acquired. They invested EUR 10.5 million in this production facility. Initially, the company employed 120 people.
In 2020, Morgan Furniture LLC slightly reduced its net income compared to 2019 – to UAH 912.15 million and received a UAH 31.63 million loss against a net profit of UAH 45.03 million.
The company is part of Home Group SA, a large European manufacturer of household goods, which is registered in Luxembourg.
The holding has production facilities in Poland, the Baltic countries and Ukraine.
In June 2017, the Antimonopoly Committee of Ukraine allowed the Chinese furniture group ManWah to acquire a 50% stake in Home Group.
FOAM RUBBER, PRODUCTION LINE, UPHOLSTERED FURNITURE
