Brazilian textile major Vicunha Textil, which bills itself as Latin America's biggest such concern, is interested in buying struggling Colombian rival Fibratolima.

Citing Colombian President Alvaro Uribe, Reuters reported that Vicunha would buy debt-ridden Fibrotalima's "machines and real-estate assets."

Executives at Ibague-based Fibratolima and Vicunha were not immediately available for comment.

Colombia's textile industry is struggling under high rates of illegal contraband, mainly from China and other Asian countries.

As a result, local producers are restructuring and looking for deep-pocketed partners to help them gain a competitive edge.

With 15 operating subsidiaries, Vicunha is a large producer of denim and diverse textiles and fabrics.

Fibratolima reportedly makes 700 tons of thread per month and 1.4 million metres of fabric.

By Ivan Castano.