Simpo to start construction of mega furniture retail center at over 15,000 sqm in Belgrade in 2011 - another ten new showrooms in Serbia by end of year

Leading domestic manufacturer and exporter of furniture, Vranje-based Simpo, plans to open new retail facilities at about 20,000 square meters in total of ten cities in Serbia in 2010. The crown of investing in expansion of the chain of furniture showrooms will be the construction of a modern center at 15,000 to 20,000 sqm in Belgrade, which should commence in 2011 - the Executive Director for Trade, Miroljub Milenković, told eKapija during the last night's (March 18, 2010) opening of the first specialized kitchen furniture showroom in Belgrade.

The new facility in Kralja Aleksandra Boulevard occupies the surface of over 900 square meters and it is one in the series of over 100 retail facilities of Simpo on the territory of former Yugoslavia.

- The company's strategy is to develop the retail network in all cities in Serbia with more than 60 or 70,000 citizens in 2010, and the estimate is that there may be more than 10 of them. The most interesting at the moment is Požarevac, while the investment map also includes Vršac, Novi Pazar, Sremska Mitrovica, most probably Prokuplje, etc. Many of these showrooms would be opened immediately if we found the adequate space that met our conditions or the investment partner. Therefore, we are thinking about both renting outlets and building new showrooms, and we need a space of about 2,000 sqm - Miroljub Milenković explained.

He told eKapija that the newly opened showroom in Belgrade was the first facility in 2010 and pointed out that Simpo had opened seven new showrooms in Serbia, three in Bosnia and two in Montenegro in the second half of 2009.

- When it comes to expansion of network to foreign markets, we are available for all forms of cooperation with potential foreign partners, and we are also thinking about independent appearance - said Milenković, pointing out that Simpo's products are present in many countries world wide.

Simpo has the certificates of all world-renowned laboratories, which makes it possible for the company to sell furniture in big Western European market chains such as Greek Sato, British Harvey Norman, Italian Semeraro, French Conforama, But and Alinea.

Upholstery factory soon in Vranje

- One of Simpo's advantages, other than five-decade tradition and exceptional quality of products, is completed technological process - from primary to final production. The company comprises about 80 small, mid-sized and big enterprises that mainly deal with production. As far as furniture industry is concerned, we developed the line of living room furniture and dining room elements, but we were not satisfied until we started producing kitchen elements, that is, complete kitchen sets. About 45 days ago, we had the kids furniture factory in Trgovište completely reconstructed, that is, we opened a completely new factory, while the works on the new upholstery factory in Vranje are close to end. Also, we plan to develop the line of bathroom furniture - said Milenković.

In addition to furniture, Simpo also makes mattrasses, carpets, decorative fabrics, confectioneries and develops its own internal trade network that comprises tens of showrooms and department stores all around the country. The foreign-trade operations are carried out through its own companies and branch offices all around Europe and the world. Also, Simpo deals with consulting and interior furnishing through Simpo Line, the company for furnishing all types of interiors – hotels, business and residential facilities, restaurants, office space, medical institutions, fitness centers and schools, according to the "turn key" principle. Simpo Line unites all activities related to furnishing of facilities - from planning, technological developing, production and transport to assembling.

Simpo also has a transportation company and the food store network that includes 80 facilities - SI-Market. It produces healthy food and owns quince plantations, peat factory, sheep farms and fish ponds on the Vlasina. Simpo also owns exclusive catering and tourist facilities.

Fibreboard factory in ŠIK Kopaonik

Thanks to Simpo's expert help, production in the sawmill of ŠIK (Forestry Industrial Combine) Kopaonik was renewed in mid-February 2010, after two-year break.

According to earlier announcement, Simpo should open a new factory for production of high-quality fibreboards within combine Kopaonik in autumn, while the Ministry of Economy will grant the loan of 5m EUR to Simpo through the Development Fund for procurement of new equipment.

Simpo's ownership structure looks like this: 59.5% are owned by the company's stockholders, 10% are in the possession of the Pension and Disability Insurance Fund, while 30.50% belong to the Share Fund of the Republic of Serbia. Simpo has nearly 7,000 workers.

T.S.