Home / Knowledge / News / Textiles / La Internacional to boost production with IDB assistance
La Internacional to boost production with IDB assistance
Dec '10
The Inter-American Development Bank approved loans totaling $25 million to help Ecuador's denim maker La Internacional S.A. enhance production, modernize its equipment, and acquire and install a new turbine at its small hydroelectric plant.

The two technical studies needed for the plant improvement were financed and fully executed with technical cooperation funds from the Bank's Sustainable Environment and Climate Change Initiative (SECCI). Additionally, the factory will obtain carbon credits for the small hydroelectric plant's upgrade.

Of this total, $5.4 million will help La Internacional, primarily owned by Brazil's Vicunha Textil S.A., refinance its short-term debt and increase its working capital financing.

The funds –a $10 million loan from the IDB's ordinary capital complemented by $15 million to be supplied by commercial banks or other financial institutions–, will help the 90-year-old company to boost production, from 11 million to 18 million meters of denim a year.

The resources will finance the acquisition and installation of a 3 MW turbine for the factory's own hydroelectric plant, the purchase of 84 weaving looms and related equipment, and services related to energy efficiency improvements in the existing facilities.

Benefits expected from this investment include: cost reduction through the production volume increase; better efficiency and less energy consumption; increased production of clean energy to meet the capacity growth; improvement of the product mix; and better access to more sophisticated markets through enhanced quality control.

Additionally, the IDB financing will promote regional economic integration as the company, based in San Antonio de Pichincha, will export a large part of its production, particularly through preferential access to other Andean region markets, and boost technology and know-how transfer from Brazil's Vicunha Textil.

The A loan, for $10 million, is for an eight-year term, and the B loan, for $15 million, is for a six-year term. Their interest rates will be determined by market conditions.

Inter-American Development Bank

Must ReadView All

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

(left to right) Rohit Munjal, Ashok  Shah, Rahul Mehta, Premal Udani, Rajesh Masand and Jayesh  Shah

Textiles | On 28th Jun 2017

CMAI to host 822 exhibitors at 65th National Garment Fair

The Clothing Manufacturers Association of India (CMAI) will host over ...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mohammad Hassan
Biax Fiberfilm

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

Karan Arora
Karan Arora

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

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


Browse Our Archives


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