Home / Knowledge / News / Textiles / La Internacional to boost production with IDB assistance
La Internacional to boost production with IDB assistance
24
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 Apr 2017

Fix 5% GST rate for textile goods: Textile bodies

Uniform levy of 5 per cent Goods and Services Tax (GST) on all...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Courtesy: Williamsburg Garment Company

Fashion | On 28th Apr 2017

'We have grown by staying small & maximising efforts'

The easiest way to go out of business is to be too big or expand too...

Interviews View All

Victor Chao
Esmetex

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

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Giorgio Mantovani
Corman S.p.A

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Pranav Mishra
Huemn

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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:
April 2017

April 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



X