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"MADE IN KAPAN": KNITTING FACTORY STRUGGLES ON HOPING FOR BETTER DAYS AHEAD
Marine Martirosyan
15:19, November 4, 2014
There used to be guards at the Kapan Knitting Factory checking
workers on their way out to see if they had pocketed any items -
thread, fabric - on the sly.
I was told this by Armen Margaryan who now serves as company director.
He confirmed that in its heyday, such pilferage was commonplace.
Today, there are no guards at the security shack...just a heavy layer
of dust.
Armen told me about one incident when a worker came to the plant earing
nothing underneath and was caught leaving wearing six undershirts. He
had heard these stories from his father, Derenik Margaryan, and from
the old-timers.
Derenik Margaryan served as plant director from 1981. In 1996 the plant
was privatized and purchased by Sonatex OJSC, a company in which the
plant employees own 20%. Derenik now serves as company president.
Armen is his son.
While Armen Margaryan says he got interested in the business as a
child. He started working at the plant after being discharged from
the army in 2001. That's when the plant's business started to nosedive.
US Clients, Followed by Orders from Italy and France
The plant was fulfilling orders for customers in the United States.
Business was disrupted with the September 11, 2001 terrorist attacks
on the World Trade Center in New York. Flights were cancelled and
the finished goods couldn't be sold.
Armen recounts that the plant then found French and Italian clients
and shows me some old examples of what was being produced for them. He
pulled out some women's clothes in a brownish color with a brand
label and some Italian names.
The plant director says that the Italians would supply the raw
materials and the designs. Armen adds that one of those former
Italian clients recently telephoned him to ask if the plant was still
operating. They haven't yet discussed any possible new orders.
Armen shows me a pink sweater from the old samples designed by
Valentine Yudashkin, who has since become a famous designer.
"At the time, we didn't know who he was. When my father invited him to
the plant, he designed this sweater," Armen says. He then recounted
that his father had invited the famous psychotherapist Kashpirovsky
to Kapan in the late 1990s and shows me one of their first products -
a sweater embossed with a cross. It turns out that Kashpirovsky signed
the sweater which was then presented as a gift to Vazgen Sargsyan.
(Armenia's first defense minister who later served as Prime Minister)
"Recently I visited this village and an old man approached me. He said
hello. I had never met the man. When my friend and I were sitting at
the table, the old man took off his jacket to show that he was wearing
a sweater made by us. I felt really good. The sweater must have been
10-20 years old. I turned to my friend and remarked that the sweater
must have been washed 20-30 times but that it still looked good as
new. Surprised, my friend said that he could no longer wear a sweater
out in public that he just purchased last year," Armen recounted.
Windows Covered with Plastic - Business Could be Better
Today, the windows of the plant are covered with plastic sheeting
which does little to keep out the wind. Armen said that the plastic
is no longer any protection from the cold and that one of production
units has to be renovated and the windows changed; a heavy financial
burden for the small company.
As we walk through the various production units in the larger building,
some colored threads used on the Swiss sewing machines are still to
be seen. Management still believes that one day the plant will get
a new lease on life and that the orders will be rolling in.
"We haven't sold any fixtures or equipment, however strange that
may sound. During the cold and dark days after independence, many
plants sold everything. My father took the opposite approach; he
would purchase things. When I asked him why, he would say one day
we'll need it, Armen says with a smile.
Today, only one production unit, located in the building's warmest
corner, is operating. A stove is lit during the winter.
Business picked up in May 2013 to sew work clothes for local mining
companies. Now, the plant is fulfilling an order for Dundee Precious
Metals, located in Kapan.
Average salaries at the plant range from 70-80,000 AMD per month.
"Around here we don't use the word 'impossible'. If someone brings
in a sample for production, you'll never hear me say, sorry, we can't
make it," Armen says.
Mining Orders Will Keep Plant Operating until Year's End - Then What?
The Dundee order will keep the plant working until the end of the
year. After that, no one can say for sure.
"It's tough when I have to tell the workers that have to go on
vacation, which is really obligatory leave," says Armen.
Despite all the problems, the plant receives the odd order. They've
received a shirt order from some Armenians living in Miami. A few
days ago Armen's father mentioned the possibility of getting some
order from Kazakhstan. Nothing has yet been confirmed.
Armen tells me about how he had met a Syrian-Armenian in Yerevan who
had worked in a shirt print shop back home and was then driving a
taxi in the Armenian capital.
"I wanted to help the guy since he was from Syria and because he had
run out of money. I asked him if he would come to work in Kapan if I
would provide him with everything. The guy agreed but wanted a large
amount in compensation. Let me be frank, I probably wouldn't have
agreed if he wasn't a Syrian-Armenian. Anyway, he came to Kapan and
worked here for three months and taught us how to do silk-screening,"
Armen says.
Factory Doesn't Sell Products Locally - Can't Afford a Retail Outlet
When I asked Armen if they sell their products in Kapan he let out
a sigh and said they didn't have the money to open a shop.
A local retailer buys some goods from the plant and resells it in
his store in the downtown area. But the shopkeeper avoids marketing
the items as made in Kapan.
"That's his business. Maybe he's afraid it won't sell. Who can
say?" Armen says.
When I ask if the plant goes to trade shows and expos to promote
its wares, Armen grins. He says that they participated in a few
shows but it cost 200,000 AMD. It costs 100,000 AMD just for the
exhibition space.
"It's better to give that money to my workers in wages," he says,
adding that such trade shows are only good to make contacts that may
or may not prove productive in the future.
"Right now my major concern is how will I tell the workers that they
will not be working come next year?" Armen says.
Amazingly, the plant even operated during the Artsakh War years.
Armenian refugees from Azerbaijan were put to work hand knitting
socks for the soldiers.
http://hetq.am/eng/news/57178/%E2%80%9Cmade-in-kapan%E2%80%9D-knitting-factory-struggles-on-hoping-for-better-days-ahead.html
From: Baghdasarian
Marine Martirosyan
15:19, November 4, 2014
There used to be guards at the Kapan Knitting Factory checking
workers on their way out to see if they had pocketed any items -
thread, fabric - on the sly.
I was told this by Armen Margaryan who now serves as company director.
He confirmed that in its heyday, such pilferage was commonplace.
Today, there are no guards at the security shack...just a heavy layer
of dust.
Armen told me about one incident when a worker came to the plant earing
nothing underneath and was caught leaving wearing six undershirts. He
had heard these stories from his father, Derenik Margaryan, and from
the old-timers.
Derenik Margaryan served as plant director from 1981. In 1996 the plant
was privatized and purchased by Sonatex OJSC, a company in which the
plant employees own 20%. Derenik now serves as company president.
Armen is his son.
While Armen Margaryan says he got interested in the business as a
child. He started working at the plant after being discharged from
the army in 2001. That's when the plant's business started to nosedive.
US Clients, Followed by Orders from Italy and France
The plant was fulfilling orders for customers in the United States.
Business was disrupted with the September 11, 2001 terrorist attacks
on the World Trade Center in New York. Flights were cancelled and
the finished goods couldn't be sold.
Armen recounts that the plant then found French and Italian clients
and shows me some old examples of what was being produced for them. He
pulled out some women's clothes in a brownish color with a brand
label and some Italian names.
The plant director says that the Italians would supply the raw
materials and the designs. Armen adds that one of those former
Italian clients recently telephoned him to ask if the plant was still
operating. They haven't yet discussed any possible new orders.
Armen shows me a pink sweater from the old samples designed by
Valentine Yudashkin, who has since become a famous designer.
"At the time, we didn't know who he was. When my father invited him to
the plant, he designed this sweater," Armen says. He then recounted
that his father had invited the famous psychotherapist Kashpirovsky
to Kapan in the late 1990s and shows me one of their first products -
a sweater embossed with a cross. It turns out that Kashpirovsky signed
the sweater which was then presented as a gift to Vazgen Sargsyan.
(Armenia's first defense minister who later served as Prime Minister)
"Recently I visited this village and an old man approached me. He said
hello. I had never met the man. When my friend and I were sitting at
the table, the old man took off his jacket to show that he was wearing
a sweater made by us. I felt really good. The sweater must have been
10-20 years old. I turned to my friend and remarked that the sweater
must have been washed 20-30 times but that it still looked good as
new. Surprised, my friend said that he could no longer wear a sweater
out in public that he just purchased last year," Armen recounted.
Windows Covered with Plastic - Business Could be Better
Today, the windows of the plant are covered with plastic sheeting
which does little to keep out the wind. Armen said that the plastic
is no longer any protection from the cold and that one of production
units has to be renovated and the windows changed; a heavy financial
burden for the small company.
As we walk through the various production units in the larger building,
some colored threads used on the Swiss sewing machines are still to
be seen. Management still believes that one day the plant will get
a new lease on life and that the orders will be rolling in.
"We haven't sold any fixtures or equipment, however strange that
may sound. During the cold and dark days after independence, many
plants sold everything. My father took the opposite approach; he
would purchase things. When I asked him why, he would say one day
we'll need it, Armen says with a smile.
Today, only one production unit, located in the building's warmest
corner, is operating. A stove is lit during the winter.
Business picked up in May 2013 to sew work clothes for local mining
companies. Now, the plant is fulfilling an order for Dundee Precious
Metals, located in Kapan.
Average salaries at the plant range from 70-80,000 AMD per month.
"Around here we don't use the word 'impossible'. If someone brings
in a sample for production, you'll never hear me say, sorry, we can't
make it," Armen says.
Mining Orders Will Keep Plant Operating until Year's End - Then What?
The Dundee order will keep the plant working until the end of the
year. After that, no one can say for sure.
"It's tough when I have to tell the workers that have to go on
vacation, which is really obligatory leave," says Armen.
Despite all the problems, the plant receives the odd order. They've
received a shirt order from some Armenians living in Miami. A few
days ago Armen's father mentioned the possibility of getting some
order from Kazakhstan. Nothing has yet been confirmed.
Armen tells me about how he had met a Syrian-Armenian in Yerevan who
had worked in a shirt print shop back home and was then driving a
taxi in the Armenian capital.
"I wanted to help the guy since he was from Syria and because he had
run out of money. I asked him if he would come to work in Kapan if I
would provide him with everything. The guy agreed but wanted a large
amount in compensation. Let me be frank, I probably wouldn't have
agreed if he wasn't a Syrian-Armenian. Anyway, he came to Kapan and
worked here for three months and taught us how to do silk-screening,"
Armen says.
Factory Doesn't Sell Products Locally - Can't Afford a Retail Outlet
When I asked Armen if they sell their products in Kapan he let out
a sigh and said they didn't have the money to open a shop.
A local retailer buys some goods from the plant and resells it in
his store in the downtown area. But the shopkeeper avoids marketing
the items as made in Kapan.
"That's his business. Maybe he's afraid it won't sell. Who can
say?" Armen says.
When I ask if the plant goes to trade shows and expos to promote
its wares, Armen grins. He says that they participated in a few
shows but it cost 200,000 AMD. It costs 100,000 AMD just for the
exhibition space.
"It's better to give that money to my workers in wages," he says,
adding that such trade shows are only good to make contacts that may
or may not prove productive in the future.
"Right now my major concern is how will I tell the workers that they
will not be working come next year?" Armen says.
Amazingly, the plant even operated during the Artsakh War years.
Armenian refugees from Azerbaijan were put to work hand knitting
socks for the soldiers.
http://hetq.am/eng/news/57178/%E2%80%9Cmade-in-kapan%E2%80%9D-knitting-factory-struggles-on-hoping-for-better-days-ahead.html
From: Baghdasarian