The management of Gama Textile Group of Austria will take a decision on whether to set up a factory in Malta by the end of the month but the signs are good, with the quality of the workforce and facilities cited as being definite advantages.

The Industry Ministry announced on Wednesday that the group was negotiating with Malta Enterprise for the setting up of a Malta factory for quality jeans wear that would be expected to employ 400 former Denim Services employees.

Dieter Krestel, who is in charge of corporate communications, told The Times yesterday that although Gama had not considered only Malta, the other countries, especially those in Eastern Europe and Asia, were now out of the equation.

"We were looking for denim producers fitting in with our very specific requirements in several textile destinations in and outside of Europe.

"We visited the sites of Denim Services during the last days and we came to the definite conclusion that the workforce and machinery we found in Malta would fit best with our present and future activities."

This, the company said, was because:

¤ Malta had a very experienced and highly professional workforce and management;

¤ It had facilities to produce high quality products;

¤ It had an English speaking workforce and management who perfectly understood the needs of European consumers;

¤ The management and the workforce were open to new methods and business opportunities in the field of denim; and

¤ There were very favourable possibilities in logistics.

Mr Krestel said that Gama's chief executive officers will be in Malta again next week trying hard to get things ready.

Asked how the country was considering Malta when other textile companies were leaving, Mr Krestel said Gama understood very well that denim production and finishing as it was made up to now, very successfully, by companies like Denim Services, had no long-lasting future in Europe.

"Nevertheless, we strongly believe in certain strengths of the European garments industry.

"It is absolutely clear that manufacturers in Europe as well as in Malta cannot compete by just delivering high quantities at high quality. "We chose Malta, with its specific know-how, to develop new ways in manufacturing and distributing high fashion jeans which can be tailored to the very specific requirements of high-end consumers."

Malta was ideal in Gama's situation because it had more know-how than that required for the manufacturing of jeans.

Besides investing in the different skills and abilities of 400 Maltese people, Gama would also be buying the machinery of the former Denim Services which it required for keeping up with production.

It will invest in the training of workers as well as in the development of new products and methods.

"We are also planning to benefit from Malta's favourable geographical position in the Mediterranean and therefore consider strong future investments in logistics and distribution," it said.