The company "Textile-Contact" (TC), one of the key assets of the trading and manufacturing TK Group, anticipates a 10% increase in turnover in 2024 compared to 2023.
"If the gross turnover in 2023 was approximately 1.1 billion UAH, this year we expect a 10% growth due to an increase in production volumes," the company informed the Interfax-Ukraine agency.
Firstly, TC emphasized that the expected growth is driven by an increase in the number of products manufactured at the company's three sewing factories, which compensates for declines in other areas. Additionally, production growth has been achieved in part by launching new sewing directions.
"The company has opened new directions: 'Protective Clothing', 'Workwear', 'Uniforms'. We have added a new product line 'TC-Bag', which has helped to offset the decrease in demand in other areas," TC noted.
At the same time, the company highlights certain difficulties in fabric sales, leading to a decline in their sales.
"Smuggling of Turkish fabrics and the return of global chains such as H&M and Zara to the Ukrainian market have resulted in decreased demand for fabrics from Ukrainian clothing manufacturers. As expected, military actions have also impacted overall demand and purchasing power," the company commented.
"Textile-Contact" has invested 25 million UAH in acquiring new equipment this year as part of its production modernization strategy.
In response to a question about energy supply for enterprises, the company stated that they are 100% provided with independent energy sources in the event of outages.
"We guarantee uninterrupted production operations and are fully supplied with electricity thanks to the presence of backup power sources: diesel generators and uninterruptible power supply systems. At the same time, we are actively seeking investments to acquire alternative and more environmentally friendly energy sources," TC emphasized.
Commenting on another issue in Ukraine today – the mobilization of military conscripts, the company stated that currently, out of 645 employees, 126 are military conscripts.
"The situation is exacerbated by the fact that since the beginning of the full-scale invasion, 31 employees have already been mobilized. Given that a significant portion of our male employees are military conscripts, it is very important for us to obtain the opportunity for reservation," the company stressed.
TC added that despite the majority of employees being women, it is difficult to replace, for example, male loaders and specialists working with equipment that requires not only mechanical skills but also physical endurance.
The company clarified that they received the first status of critical for the economy from the Ministry of Economy, and were able to reserve 50% of military conscripts on November 29, 2024, with the second reservation on December 5.
"We are now preparing for the next step – confirming the status of a critically important enterprise for the possibility of reserving workers for up to 12 months. The company fully meets the new criteria, including salary levels, which for our employees is not lower than the minimum wage multiplied by a coefficient of 2.5," TC emphasized.
"Textile-Contact" unites several sewing enterprises of the group ("TK-Style", "TK-Lubny", and "TK-Korosten"), as well as a network of fabric supermarkets "TK-Market", an online store, a central warehouse, and an office.
TK Group was founded in 1995. It currently represents a holding that encompasses the full range of services in the textile industry – from raw materials and threads to ready-made solutions for B2B, B2G, B2C clients.
The founder of the group is businessman Alexander Sokolovsky, head of the committee for defense procurement in the light industry at the Federation of Employers of Ukraine, and a member of the public movement "Manifest 42".