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Alstyle to produce 2 mn lbs of fabric per week at Sonora plant
27
Jun '08
Alstyle Apparel & Activewear (AAA), a wholly owned subsidiary of Ennis Inc is pleased to announce that, subject to bank and board approval, a new manufacturing facility will be built in the town of Agua Prieta, in the state of Sonora, Mexico.

Agua Prieta is a Mexican border town close to Douglas and Tucson, Arizona and was chosen after months of research because of solid employee base, abundant natural resources, favorable climate and trade corridor access to the North American Market.

Mr. Eduardo Bours Castelo, Governor of the State of Sonora, expressed his commitment and enthusiasm for this new investment in Sonora stating, “This new project in Agua Prieta will not only benefit the company but the entire community.

This is a wonderful opportunity to continue the development and economic growth of Sonora, as well as a market driven decision for Ennis. Through the years Sonora has been a profitable investment for them and this new project confirms it.”

Mr. Antonio Cuadras, Major of the City of Agua Prieta, concurring with Governor Bours in expressing how important this new project is for his community stated, “The State Government and the City of Agua Prieta have been working for more than a year with Ennis Group exploring the possibilities of their investment in our city.

We have continuously negotiated with them and now we are both ready to partner. It is a very important time for Agua Prieta, thousands of families will benefit from this expansion project.”

Mr. Keith Walters, Chairman, CEO and President of Ennis, Inc. commented, “I am delighted that this project will begin in the near future. It is the culmination of many months work by the management of our company and the officials of the State of Sonora Mexico and the City of Aqua Preita.

I especially want to express appreciation to Governor Eduardo Bours Castelo, Mayor Antonio Cuadras, Secretary of the Economy - Francisco Diaz Brown Olea and the City of Aqua Preita for their commitment for this expansion project. I am looking forward to our continuing relationship, as our Company expands its manufacturing facilities.”

The new facility will be leased from a local developer and will be supplied with a combination of newly purchased equipment and existing equipment. Total capital expenditures are estimated to be between $35 million and $40 million, with funding to be provided by internal cash flow and, as required, existing credit facilities.

The new facility will be approximately 700,000 square feet in size and will be vertically integrated, including: knitting, dying, cutting, sewing and distribution. The facility will eventually have the capacity to produce in excess of 2,000,000 lbs of fabric per week.

Total employment is expected to reach 2,500 people at full capacity. It is anticipated that the facility will open in the summer of 2009 and be operational by the fall of 2009. This expansion is expected to help Alstyle Apparel & Activewear facilitate future growth and remain cost competitive in the global active-wear market.

Ennis Inc

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