Egyptian carpet maker Oriental Weavers (ORWE.CA) is negotiating to raise prices on some of its contracts with European importers following the euro’s tumble against other currencies this year, the company said.
The euro hit its lowest point since 2006 on Monday before rallying slightly last week. Euro-denominated sales account for some 15 percent of the Egyptian firm’s total sales.
"The declining euro was unexpected, the percentage was definitely unexpected," the firm’s investor relations manager, Haitham Moneim, said.
"What we are renegotiating now is some sort of better prices," he said, adding he expected the first changes to come into effect in the third quarter of this year.
Oriental Weavers exports over half of its goods to more than 100 countries, with about 20 percent of its sales coming from Europe. It also controls 85 percent of Egypt’s carpet industry.
Haitham said he expected that clients such as Swedish furniture retailer IKEA would be open to adjusting prices after the euro shed over 15 percent of its value this year, and did not think higher prices would push importers to order fewer carpets.
