With five wholegarment machines currently in operation, Orfama has reduced the final cost of garments by around 15%, according to António Cunha, commercial director of the Montagut group company. The investment of approximately €500,000 builds on the implementation of the technology started in 2023, making it possible to «produce items that we previously did not manufacture and which have also, to some extent, reduced garment production costs by cutting down on linking operations», the commercial director emphasises.
Fully fashioned knitwear production nevertheless continues in parallel. «This was an addition», states António Cunha, adding that the technology also addresses the difficulty of finding workers to assemble garments through manual linking. «It is about meeting market needs and also preparing for the future», he explains. According to the commercial director, market developments could lead Orfama to make increasing use of wholegarment machines, although the company currently maintains both production processes.
Orfama produces around 300,000 garments a year, with no plans to increase production capacity, and its business is divided equally between private label manufacturing and production for the Montagut group’s own brand. «We do not want to increase production capacity; what we want is to increase our production margins», notes António Cunha.
In private label, 99% of production is destined for export, with sales to Europe, the US, Latin America, Japan and China. The US market has been growing and is one of the markets in which the company is investing. «It is a market that is willing to pay the prices for the products we make», the commercial director points out, also highlighting «the attractive order volumes» involved.
To develop this market, Orfama has been participating in international trade fairs, such as Première Vision Paris, where it will exhibit again in January, and conducting sales visits. In November this year, the company will take part in a trade fair in the Netherlands for the first time and is considering returning to the New York edition of Première Vision.
In 2025, the knitwear manufacturer increased its turnover by around 5% to approximately €6 million, while maintaining its production volume. For 2026, Orfama expects «to maintain more or less the same turnover as last year», António Cunha reveals, adding that «this is already a very good result, given the market difficulties we are facing».
The largest price increases experienced by the company have been in raw materials, such as cashmere. «Next season, cashmere will increase by €40 per kilogram, which is an enormous rise, representing around €10 more per garment for this type of product», reveals António Cunha. Part of the increase will have to be absorbed by Orfama and part by its customers, creating «obstacles» in negotiations, according to the commercial director. «This will have an impact next year», he explained, because purchases for 2026 have already been made and winter 2027 orders will be delivered from June or July next year.
