Marimekko - Company Announcement

MARIMEKKO TRIPLING THE OUTPUT CAPACITY OF ITS TEXTILE PRINTING FACTORY IN FINLAND

Marimekko Corporation, Stock exchange release 2 February 2011 9.00 AM

MARIMEKKO TRIPLING THE OUTPUT CAPACITY OF ITS TEXTILE PRINTING FACTORY IN
FINLAND 

Marimekko is investing in a new printing machine and screen-making equipment at
the company's textile printing factory in Helsinki. The value of the investment
will be roughly 1.5 million euros. The investment will triplethe textile
printing factory's output capacity compared to present levels. In 2010,
Marimekko's printing factory produced 1.1 million metres of fabric. The new
machinery will come online towards the end of the year 2011, and the added
capacity will be deployed in stages. The investment will also enable the
company to prepare for higher demand in the long term. 

The textile printing factory has been operating at full capacity since summer
2009, when the company's older printing machine was taken out of use. A sizable
boost in capacity is needed because of both current order books and the
company's longer-term growth targets. The acquisition of the printing machine
is intended to secure sufficient capacity for foreseeable demand, to shorten
delivery lead times, and to improve manufacturing efficiency. Also, the
investment will reduce dependency on a single printing machine and open up
opportunities for product development. 

The new printing machine uses rotary printing technology, which is considerably
faster than the flat screen printing method currently used. The flat screen
printing machine purchased in 2004 can be used to print larger and more
technically demanding patterns. Most of the machinery and equipment used in the
textile printing factory were updated during the period 2004-2008. 

“It's very important to us for Marimekko to have profitable in-house
manufacturing in Finland today and in the future. The prevailing trend in the
sector is totally different but we wanted to go against the tide because we
believe that, by investing in print technology and enhancing our specialised
expertise, we will strengthen our competitive edge. Printed fabrics and related
design expertise have always been the core of Marimekko's business and brand.
New printed fabrics and products made from the fabrics are the result of
teamwork by professionals from various fields, and it's extremely important
that the designers are able to do their work close to the manufacturing. We
believe that pioneering in print pattern design goes hand in hand with in-house
production. We are also already preparing to meet greater demand in the future.
And naturally it is easier to get to grips with product quality and
manufacturing responsibility in a plant you own,” says President and CEO Mika
Ihamuotila. 

In addition to the textile printing factory, Marimekko has two production
plants of its own in Finland: a sewing factory in Kitee and a bag factory in
Sulkava. 

Further information: Product Director Niina Nenonen, tel. +358 9 758 7582,
niina.nenonen@marimekko.fi 

MARIMEKKO CORPORATION
Group Communications

Piia Pakarinen
Tel. +358 9 758 7293
Email: piia.pakarinen@marimekko.fi

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
Marimekko's website: www.marimekko.com

Marimekko, established in 1951, is a leading Finnish textile and clothing
design company renowned for its original prints and colours. The company
designs and manufactures high-quality clothing, interior decoration textiles,
bags, and other accessories. Marimekko products are sold in about 40 countries.
Products with Marimekko designs are also manufactured under licence in various
countries. In 2009, the company's net sales amounted to EUR 72.5 million, of
which international sales accounted for 27.3%. The Group employs about 370
people. Marimekko's shares are quoted on NASDAQ OMX Helsinki Ltd.

Attachments:

Marimekko_Investment_Helsinki textile printing factory_Stock exchange release_02022011.pdf