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

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Steve Cole
Xerium Technologies

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Bani Batra

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

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

December 2016

December 2016

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


Browse Our Archives


Advanced Search