Nylon Knitting to increase workforce

A memorandum of understanding has been signed between the government and Nylon Knitting in which the company will invest €43 million (Lm18.46) in its manufacturing plant in Malta between 2008 and 2011, in line with its new business plan.

This emerged yesterday during a visit to the plant by Austin Gatt, Minister for Investment, Industry and IT and Nylon Knitting chairman Luigi Pezzoli.

As a result of this investment, the company has undertaken to retain the present 322 employees until 2017 and intends to increase the complement to 400 employees by December 2011, the government and company said in a joint statement.

Nylon Knitting, which produces nylon yarns and fabrics, has been operating in Malta since 1963. Throughout this time it has had to face various challenges in order to remain competitive as the global market for its products changed and as the cost of production in Malta increased in parallel with the standard of living on the island.

"In 1997, with 189 employees, Nylon Knitting was just surviving and was not generating any profit. At that point the shareholders faced a major decision in the face of growing competition as well as opportunities to shift its production base elsewhere," the statement said.

"The company decided to invest in order to remain competitive. In fact, in 1998, Nylon Knitting expressed its confidence in Malta and invested €7 million (Lm3 million) in machinery and equipment and another €55 million (Lm23.61) over the following 10 years." The investment of €43 million will be in three phases and includes the expansion of the knitting department and the complete substitution of the old technology including a substantial investment in machinery and equipment.