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Brazilian denim & twill leader in Argentina
Jul '11
VICUNHA TEXTIL is off and running again with the purchase of a new production site in Argentina, in which the denim giant will invest around US$ 40 million. The investment sum includes acquisition and modernization of machinery as well as renovations to the spinning and weaving facilities, and is aimed at increasing production to 2 million meters a month. At least 400 direct new jobs will be created and around 1,500 indirect ones, meaning the acquisition in VICUNHA's neighbour country will also help contribute to the overall economic stability in South America.

Together with its three existing plants in Northeast Brazil as well as one in Ecuador, VICUNHA thus moves up to second place on the list of the world's largest makers of denim and twill and further strengthens its position as a world leader in this market segment. Each of the five plants will operate 24 hours a day 7 days a week.

“An agreement signed in February of this year secured a purchase option for VICUNHA,” explains Thomas Dislich, Director of Vicunha's European branch VICUNHA EUROPE, with regard to the acquisition in the neighboring country. “During the last five months the Argentina group passed its production on to Brazil. Having now formalized the deal, it becomes a 100% subsidiary of Vicunha Brastex, the parent company of Tintoria Ullum Tejeduria Galicia and Tejeduria Panama, which are the division plants for weaving, dying and finishing.”


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