Negotiations for Purchase of Cone Denim Textile Factory

European investors are to acquire the Cone Denim Plant in Nicaragua, which has been closed for 3 years and could reopen in late 2012.

Thursday, April 26, 2012

"It is a fact that this year the Cone Denim plant will be reopened. We're just waiting for the (purchase) negotiations to be completed," confirmed Dean Garcia, executive director of the Nicaraguan Association of Textile and Apparel Companies (Anitec), according to

The International Textile Group (ITG), which owns the plant had to close in 2009 due to lack of market for its products following the global economic crisis. Garcia said he hopes the National Free Zone Commission will make an announcement in the coming days, reported

Garcia acknowledges that it is important to ensure that the United States approves an extension to the country for ten years of tariff preference levels (TPL), because the benefit ends in 2015. TPL allows, under the CAFTA framework, the import of raw materials for making clothes which are then sold to U.S. to be exempt from taxes.

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"The secretary of the National Free Zone Commission (CNZF), Alvaro Baltodano, and executive director of the Nicaraguan Association of Textiles and Apparel (Anitec), Dean Garcia, confirmed to the press that the reopening of the company is underway and will become official in the coming weeks,” according to an article at