In order to increase production for its American jeweler Tiffany, LVMH, the largest luxury goods company in the world, has decided to purchase a majority position in Platinum Invest Group, the owner of French jewelry manufacturers Orest and Abysse.

Tiffany will speed up manufacture of excellent and expensive jewelry with the acquisition of the business, which operates five factories in eastern France and employs 800 people, the firms said in a joint statement.

In addition, Platinum Invest, which also owns the upscale jewelry brands Bulgari and Chaumet, will continue to make jewelry for current customers outside of LVMH and other brands in the luxury group.

European luxury businesses have been strengthening their control over supply chains as a result of the post-pandemic surge in demand for premium goods.

In October of last year, Bulgari announced plans to develop its Valenza plant in northern Italy, adding 750 workers and tripling production by 2028. Bulgari is also increasing manufacturing.

The high-profile reopening of Tiffany’s New York flagship is anticipated to happen before the end of the month, so LVMH is preparing.

LVMH, which paid $16 billion for Tiffany in 2021, intends to increase the jeweler’s sales through new goods and shop network growth, with the goal of enhancing profitability in the future.

The deal’s financial details were not disclosed, although it involved buying Platinum Invest from private equity company Andera Partners and French public investment bank BPIfrance.

(Adapted from GulfNew.com)