Description of activity

The Company’s core activity is the manufacture of woollen and wool-blend fabrics. The range of products include combed fibres for trousers, dresses and other clothing, as well as thicker fabrics manufactured with the use of carding technology and intended for manufacturing of overcoats and jackets. The Company’s main range of products are textile-covered overcoat fabrics type pattersham and loden (trade-names of fabrics with varying quality of textile cover), as well as fabrics for manufacturing of women’s garments. Within this sector, Tomex has established a firm market position and built a highly recognisable trademark, successfully competing with foreign products (including Italian brands) and cooperating with a number of demanding customers. The company also provides services in the scope of spinning, weaving, dyeing and fabric finishing. The Company’s offer is directed to customers with high requirements in terms of quality and pattern. The products of Tomex are supplied mainly to the domestic market, including companies operating in the related market segments such as: manufacturers of clothing for men, women and youth, as well as fabric wholesalers and retail stores. Up to 80% of the products are sold based on contracts concluded through direct business contacts (trade exhibitions, visits to/by clients). Presently, Tomex conducts its sales through 4 affiliated wholesale stores who sell the fabrics at the prices set by Tomex. The Company also runs a factory outlet in Tomaszów Mazowiecki. Tomex does not face significant competition on the part of the Polish fabric manufacturers. With respect to carded fabric products, the main competition currently comes from Italian companies. However, Chinese companies are likely to intensify their competitive activities in the nearest future. The Company’s main future strategic activities will include: strengthening the position of Tomex on the domestic high-quality fabric market; undertaking activities aimed at gaining funds required to thoroughly modernise the Company; improving the organisation of the Company’s activities in order to significantly decrease the operating expenses. Currently, there has been a steady decrease in the demand for woolen garments on the clothing market. At the same time, the demand for chemical-fibre products has been observed to grow. Customers gradually recognise the qualities of garments made of synthetic fibres, which are cheap and easy to care for. This trend will undoubtedly continue, while the demand for woolen garments will be driven by the richer segments of the society. In consideration of the above, the offer of woolen products will be for the niche market, targeted for customers with high demands with respect to the quality and pattern.