Patek Philippe is a Swiss manufacturer based in Geneva that produces ultra high-end timepieces and watches. We say “ultra high-end” as their most affordable watches start at $30,000 dollars and many cost a few hundred thousand, if not millions of dollars. Given that fact, the company has a very small target market and needs a great deal of funds to operate. Patek Philippe has recently announced that they plan on investing $440 million dollars into their company, hoping to further their business ventures.
In March of the previous year, Chairman Thierry Stern said that the family-owned business would probably have to leave Geneva due to incredible tax burdens. Well not even a year later, it seems that they are going back on that statement as the company plans to use this massive investment to construct a new building in Geneva. In addition to this new site, Patek Philippe will also use the money to train new watchmakers, develop new watches, restore old timepieces, and research new watchmaking techniques. The building is rumored to be around 538,000 square feet and should be completed by 2018.
The company is looking for long-term investments with the $440 million dollars. Chairman Thierry Stern and President Philipe Stern said “We are very pleased to strengthen and sustain our business through this major project and thus reaffirm the commitment of Patek Philippe in Geneva. We can thus ensure the development and long-term future of our company.”, in a recent press statement.
Despite the high-cost of the investment, the company should be able to make it back quickly. One of their watches, Supercomplication Pocket Watch, sold in an auction recently for $22.7 million dollars in an auction, making it the most expensive watch ever sold in an auction. While they don’t see any of that money, it just proves how valuable and desirable their watches are.
Photo from Patek Philippe
