In Third Generation of Family Ownership, Carvalho Exports
January 5, 2001
Lordelo, (Portugal) — Although terry towel producer Fábrica de Tecidos Carvalho can trace its heritage back 75 years, the factory is actually a new mill with a young, dynamic workforce, manufacturing completely different products than its forerunners.
A reorientation of the 75-year-old mill commenced in the early 1980s when new technology was introduced for the production of terry towels. "This was the right strategy at the time," said CEO Francisco Moreira Gomes, "and we are still comfortable with that decision."
Founded in 1925, Carvalho has remained a family firm and is currently managed by the third generation. It began as a sheets and bedlinen producer, diversifying into blankets in the 1950s.
Carvalho now makes a wide range of terry towel products and has an annual turnover of around $15 million. It has a production capacity of 120,000 kg a month, of which 85% is exported. The main markets are the U.K., the U.S.A., Spain and Portugal, together with many other countries worldwide.
Terry products such as bath and beach towels, bathrobes and kitchen towels for both residential and contract customers are woven on 40 of the latest Sulzer Textil looms. The company also has its own yarn- and fabric-dyeing facilities, a quality assurance laboratory and a CAD system for design and product development.
Noting that all markets are decreasing at present, he pointed to competition from countries such as Turkey, adding this did not directly affect the high end of the market where Carvalho operates.
The other main influence is the fact that many markets are not buying in the same quantities as before, particularly in the U.S.A., which has experienced is a 7% decline in new housing, he said.
With the help of a sophisticated forecasting model and a belief that "it is desirable to look ahead at least 2-4 years," Moreira Gomes reckoned that 2001 would be "generally not bad," with both the U.S.A. and Europe performing a bit better than 2000.
He said today's terry towel market wanted design, such as jacquard, as well as quality and special fiber blends, such as cotton with linen, viscose or modal. "Around 50% of our market still demands pastel colors," he added.
For the future, Carvalho aims to be even more customized, which means that big quantities will not be necessary. "Our vision is to be honest with customers, to offer good service and to maintain the best quality," said Moreira Gomes. "And our motto is: 'Do it right. Keep it right.'"
• Fábrica de Tecidos do Carvalho Lda, Estrada Nacional 105, Alto da Ribeira, 4815-135 Lordelo, Portugal. Tel: + 351 252 840440. Fax: + 351 252 841335. Heimtextil Stand: 5.0 C73.
A reorientation of the 75-year-old mill commenced in the early 1980s when new technology was introduced for the production of terry towels. "This was the right strategy at the time," said CEO Francisco Moreira Gomes, "and we are still comfortable with that decision."
Founded in 1925, Carvalho has remained a family firm and is currently managed by the third generation. It began as a sheets and bedlinen producer, diversifying into blankets in the 1950s.
Carvalho now makes a wide range of terry towel products and has an annual turnover of around $15 million. It has a production capacity of 120,000 kg a month, of which 85% is exported. The main markets are the U.K., the U.S.A., Spain and Portugal, together with many other countries worldwide.
Terry products such as bath and beach towels, bathrobes and kitchen towels for both residential and contract customers are woven on 40 of the latest Sulzer Textil looms. The company also has its own yarn- and fabric-dyeing facilities, a quality assurance laboratory and a CAD system for design and product development.
Noting that all markets are decreasing at present, he pointed to competition from countries such as Turkey, adding this did not directly affect the high end of the market where Carvalho operates.
The other main influence is the fact that many markets are not buying in the same quantities as before, particularly in the U.S.A., which has experienced is a 7% decline in new housing, he said.
With the help of a sophisticated forecasting model and a belief that "it is desirable to look ahead at least 2-4 years," Moreira Gomes reckoned that 2001 would be "generally not bad," with both the U.S.A. and Europe performing a bit better than 2000.
He said today's terry towel market wanted design, such as jacquard, as well as quality and special fiber blends, such as cotton with linen, viscose or modal. "Around 50% of our market still demands pastel colors," he added.
For the future, Carvalho aims to be even more customized, which means that big quantities will not be necessary. "Our vision is to be honest with customers, to offer good service and to maintain the best quality," said Moreira Gomes. "And our motto is: 'Do it right. Keep it right.'"
• Fábrica de Tecidos do Carvalho Lda, Estrada Nacional 105, Alto da Ribeira, 4815-135 Lordelo, Portugal. Tel: + 351 252 840440. Fax: + 351 252 841335. Heimtextil Stand: 5.0 C73.
