With an investment of $35 million and under the name Pride Denim Mills the textile the plant will restart operations in early 2014.
The textile company, which was acquired by Grupo Karim’s de Honduras announced the creation of "600 jobs to produce about 28 million yards of denim a year, which is the production capacity of the plant," noted an article in Laprensa.com.ni.
Under new management and Honduran capital, the textile plant in Nicaragua will resume operations in the next few weeks.
The information was confirmed by Dean Garcia, executive director of the Nicaraguan Association of the Textile and Apparel Industry (Anitec). "We are in coordination with representatives who bought the company and we are looking to see if it is likely that operations will start before the end of this month", he said.
Millknit Industries will begin operations in early 2013, producing fabrics for clothing companies established in the free zones.
Following the closure of Core Denim in 2009, Nicaragua has had no cloth production, which is a disadvantage for the clothing sector, which has to import its raw materials.
Laprensa.com reports that "Millknit will operate in the industrial park Las Mercedes, Managua, it is funded with North American capital and the initial investment is for $25 million, according to the National Free Zone Commission (CNZF). The initial projections for jobs is 270 positions."
European investors are to acquire the Cone Denim Plant in Nicaragua, which has been closed for 3 years and could reopen in late 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 Laprensa.com.ni.
The textile company, a subsidiary of International Textile Group, which invested $100 million in its plant in Nicaragua, now has three interested parties; meanwhile there are still plans to reopen its operations.
The U.S. textile company Core Denim, belonging to the International Textile Group (ITG), could resume operations in Nicaragua which were suspended in March 2009, informed the government, although there is still a chance that the company will be sold, which would imply a reassessment of these plans.
Negotiations between the government and representatives of Core Denim might not conclude until the end of the year.
Since January the possibility has existed that the US based company may reopen the plant which started operations in 2007, but was closed in March 2009.
There is much anticipation surrounding the reopening of this plant, since it used to generate about 800 jobs, which may be recovered, at least partially, if operations resume.
During the course of the year, the U.S. textile company will restart operations in the country.
The start-up would initially create 700 new jobs.
"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 Laprensa.com.ni.
The Venezuelan Government is negotiating the purchase of 10 million jeans produced in Nicaraguan Free Zones.
A trade mission from Venezuela, which includes Government authorities and private businessmen, is touring Nicaragua’s free zones. Alberto Baltodano, technical secretary of the National Free Zone Commission (CNZF), remarked that this deal would imply $100 million in revenue for the textile sector.
Yu Jin is the second textile company closing during the course of 2009 in Nicaragua, leaving at least 500 people unemployed.
Cone Denim textile from the US was the first textile company to formalize its closing when it requested a temporary, 14-month closing at the end of March due to the suspension of orders from United States. The closing sent 800 people to the ranks of the unemployed.
The closing of the U.S. company because of the economic crisis sends 800 workers to the ranks of the unemployed.
The company, which had announced a temporary closing for a couple of weeks, requested a temporary closing of 14 months from the Ministry of Labor.
The Elnuevodiario.com.ni website published: "The board of directors of Cone Denim Nicaragua, located in Ciudad Sandino, confirmed the information through a press release in which they explained that the decision to close operations in the country was made due to the global economic crisis and the slowdown in the supply chain."
The US textile company, Cone Denim, temporarily closed its 850-employee plant in Nicaragua.
The denim manufacturing plant, International Textile Group, was inaugurated in the middle of last year with an investment of $100 million.
Alvaro Baltodano, president of the Free Trade Zones Corporation of Nicaragua, in an article in Prensalibre.com, said that "Code Denim executives stated that it was a ‘temporary closure’ and that it will resume its operations in 'a few weeks.’"
International Textile Group's Cone Denim has announced the opening of its Nicaragua operation.
Located outside Managua, Nicaragua in the Jorge Bolanos Abaunza Textile Park, the Cone Denim Nicaragua (CDN) facility held its Grand Opening Ceremony on April 22.
A fully vertical operation, CDN is equipped with the most modern manufacturing equipment to process raw cotton through finished denim fabric.
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