In a move aimed at overcoming problems with US textile quotas, Menderes Tekstil is to invest $2.0m in the construction of a textile factory in Bulgaria's southern town of Svilengrad.

Menderes Tekstil, which already has plants in Greece, Israel and Ireland, says it will also be able to make use of Bulgaria's cheap labour, energy and components.

The new factory will initially hire 100 workers and plans to add another 150 by end-2002.

The company hopes to achieve a turnover of $119m in 2002, at least $15m of which should come from the new plant in Bulgaria.