VILNIUS - Alytaus Tekstile, the largest producer of cotton fabrics in the Baltics, has opened talks with three foreign investors concerning operations at the company's unused facilities.
Egidijus Pazarauskas, Alytaus Tekstile production director, said the company possesses 20,000 square meters of vacant premises and would like to offer them to other textile companies.
"Together with potential foreign investors we are considering various forms of cooperation - ranging from establishment of joint ventures to the lease of premises - that would benefit both parties," Pazarauskas said.
Agreements over investments could lead to the prevention of problems posed by the company's surplus workforce, as skilled workers could be taken over by foreign companies, he noted.
Alytaus Tekstile has begun talks on cooperation with a large-scale U.K. synthetic materials producer that could shift its production to Alytus, Pazarauskas said.
An Italian textile, upholstery and furniture producer and a German clothes factory have also expressed interest.
In order to improve effectiveness, Alytaus Tekstile said it intended to lay off 9.5 percent of its work force in several months - i.e. 220 of approximately 2,300 workers.
The company has notified the Lithuanian Labor Exchange about the dismissals.
The Hong Kong-based company Asean Interests, a member of the Tolaram Group, lost ownership of its 47.31 percent stake in Alytaus Tekstile in February after failing to meet its privatization commitments.
The Economy Ministry controls 66.29 percent of the textile producer.
In the first half of 2004, the company's losses surged by 28.9 percent to 6.5 million litas (1.9 million euros), while sales plummeted to 37.3 million litas.
