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

Textiles | On 8th Dec 2016

Package will boost made-ups sector: SIMA

The reforms package approved by the Union Cabinet to boost employment ...

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Textiles | On 8th Dec 2016

R&D is key to textile industry’s growth: Kavita Gupta

Research and development is the key to the growth of the textiles...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search