German fashion house Hugo Boss is expanding production capacity closer to its base in Europe to reduce its dependence on south-east Asia at a time when global supply chains are under severe pressure.
Chief executive Daniel Grieder, who is aiming to double sales to €4bn a year by 2025, told the Financial Times that supply chain disruptions were creating “unbelievable challenges” for Hugo Boss and its rivals, with supply shortages, delays and higher shipping costs.
The company was enlarging its factory in Izmir, Turkey, in response, Grieder said, adding that it wanted to hire almost 1,000 more workers there, increasing staff by a third. It was also planning to invest more in machinery and tools at the site.
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