Leading denim maker Uco Raymond has opened a new mill in Giurgiu, Romania.

The Belgium-based firm currently employs 41 people at the plant but aims to increase this to 200 workers soon.

Uco's expanded capacity will allow it to up its competitive edge against nearby Turkey's manufacturers and help it gain market share in Europe's high-volume markets.

In the last few years Uco has had problems offering competitive denims in the middle segment of the market, the company said in a statement, "but is confident that with this geographically strategically-situated plant it will be able to compete aggressively in this market."

Uco Raymond was created out of a merger between Uco Group and Raymond of India.

The merged companies have a total capacity of 80m metres per year with production in three continents. Capital is split 50-50 between Uco and Raymond. Total turnover of the business is about EUR350m (US$446.67m).