Apparel to textile chemicals conglomerate Grupo Karim’s has bought the Formosa Spinning plant in Honduras, which is located just outside San Pedro Sula, in a move that makes it the country’s only yarn spinner.
The company expects production and delivery at the Honduras Spinning Mills to start by last quarter of 2010, and says the operation will enable further consolidation of its yarn supply, which also includes operations in the US and Asia.
In an statement mailed to just-style, the company also said the acquisition shows its commitment to the region, as well as the group’s continuing confidence in Honduras.
“There is high demand and low supply of ring spun yarns made in CAFTA countries,” excutive VP Luis Mejia told just-style. “This prompted Grupo Karim’s to make the investment.”
This latest facility consists of 30,000 spindles to produce 100% ring spun combed cotton and cotton/poly blend fine count yarns. There are also plans to further invest and upgrade the manufacturing equipment, as well as certify the operation to ISO-9001.
Honduras is one the major exporters of textiles to the US, and new investments from foreign textiles manufacturers are helping to generate new jobs and offset trade losses during the height of the global recession.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
