Home / Knowledge / News / Textiles / Texhong suspends textile project in Uruguay
Texhong suspends textile project in Uruguay
27
Jan '14
China-based Texhong Textile Group Limited has officially announced suspension of its planned setting up of a viscose yarn manufacturing plant in San José Department in southern Uruguay, reports Primera Hora.
 
The decision of the firm to withdraw its plan to set up a textile plant with an investment of US$ 250 million is based on the weakening of the Brazilian real against the US dollar and the reduction of import duty on synthetic thread by the Brazilian Government.
 
The company has sent its closing statement to the San Jose Department after working for a year and a half on setting up the textile plant. The letter stated that the Texhong board decided to suspend the project primarily on two factors. First was the weakening of the Brazilian currency by 33 percent against the dollar. The exchange rate was 1.77 real for one US dollar when the project feasibility studies were carried out and it had increased to 2.35 real for one US dollar when the decision was taken. The second factor was the reduction of import duty on synthetic yarn from 25 percent to 18 percent by the Brazilian Government, the statement said.
 
In the new scenario, the manufacturing of viscose yarn in Uruguay for export to Brazil becomes unprofitable, so the company decided to suspend the project, Texhong said.
 
Texhong Group is one of the largest core cotton textile suppliers in the world and is a leading textile enterprise with focus on manufacturing high value-added core-spun cotton textile products, according to the company’s website.
 
Presently, the Group has over 1,600 customers, with sales network spread across China, Europe, South Korea, Hong Kong and Bangladesh. Headquartered in Shanghai, the Group operates 11 manufacturing plants in China, and has a production base in Vietnam with total production capacity of over 800,000 spindles and 900 air-jet looms.
 

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search