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Upholstery factories boosting capacity

Granfort, Sancal set sights on growing markets

By Larry Thomas -- Furniture Today, November 23, 2003

Yecla, Spain — Two of Spain's top upholstery producers are expanding their production facilities here, hoping to capture more of a growing domestic and export business.

Granfort, Spain's largest sofa manufacturer, is about ready to move into a sparkling new plant that will consolidate nine aging buildings.

Sancal, the country's top contemporary upholstery producer, plans to expand its plant by two-thirds next year.

"We can increase our production capacity by 30% with the new plant," said Pedro Sanchez, Granfort's director of marketing. "It will make us much more efficient."

Some production began in the 400,000-square-foot facility in late summer, and virtually everything else, including corporate offices, will be moved there by early December. Granfort has been based in Yecla, a desert town about 80 miles northwest of Valencia, since its founding more than 30 years ago. As it has grown, it has spread out into nine separate buildings, which Sanchez says causes huge logistical headaches.

"We are excited about getting everything under one roof," he said.

Sancal's 100,000-square-foot plant, by contrast, was opened just three years ago, but a 65,000-square-foot expansion already is needed to accommodate surging demand for the company's stylish products, said James Harris, international marketing manager.

Construction will begin next year. A tunnel will connect the expanded area to its showroom and corporate offices — a feature that's needed, Harris said, if for no other reason than to keep employees out of the hot desert sun. Summer temperatures routinely reach 104 degrees.

Neither Granfort nor Sancal exports to the United States, but both have their eyes on the American market.

Sanchez said about 80% of Granfort's furniture stays in Spain, with the remainder exported to France, Portugal, the United Kingdom and several other European countries.

According to Harris, Sancal gets nearly 50% of its revenues from exports. Its products are sold throughout Europe as well as in Japan, Australia and South America.

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