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 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Mike Hoffman
Gildan Activewear SRL

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

Karan Arora
Karan Arora

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

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search