Vicunha to begin denim production in Argentina

04 Feb '11

2 min read

Vicunha – the Brazilian Textile company and one of the biggest manufacturers of denim fabrics, has announced that it would start denim production in Argentina. This would reduce Argentina's dependence on imports of denim fabrics from plants in San Pablo, Rio Grande do Norte and Ceará.

In a statement issued by the company to the Stock Exchange of St. Paul, this announcement was made which states that a deal was inked between Vicunha and San Juan Ullum Group for manufacturing denim fabrics in Argentina.

The operation of the company in Argentina will be directed by means of its subsidiary – Brastex SA. The Brazilian Group ventured into Argentina way back in 1989 and so far had been operating through their Brazilian plants.

Vicunha sourced 85 percent of denim fabrics from its plants located in the states of Ceará, Rio Grande do Norte and San Pablo in Brazil. The rest of the 15 percent was manufactured domestically and was acquired by means of outsourcing arrangements with plants in Argentina.

The company's intention to start denim production in Argentina is a part of its strategy to globally expand its business. As part of this strategy, it has also installed a plant in Ecuador and opened an office in Switzerland. Apart from these, the company also made an announcement to establish a distribution centre to cater the needs of the Mexican market.

With the beginning of denim production in Argentina, Vicunha is looking forward to compete with other Brazilian textile giants, which have already started their operations in Argentina such as Santana Textiles and Alpargatas Santista under Camargo Correa.

Fibre2fashion News Desk - India

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