Cone Denim Jiaxing, a denim manufacturing joint venture company between International Textile Group and Novel Enterprises located in the People's Republic of China, has signed a loan agreement in principle with Bank of China.
The cooperation agreement includes a $35 million term loan and a $15 million working capital line of credit.
John Bakane, Chairman of the Board of Cone Denim Jiaxing, said, "Cone Denim Jiaxing is working with the Bank of China and the Jiaxing Economic Development Zone to create a world-class denim company in that region."
Bakane added, "Construction of our 28 million yard manufacturing facility is underway and we expect to be providing high quality fashion denims to our customers by the first half of 2007."
Located approximately 90 miles south of Shanghai, in Jiaxing City, Zhejiang Province, the new plant will be a vertical operation using state of the art manufacturing equipment to process raw cotton through finished fabric. When fully operational, the plant will employ approximately 700 people.
Established in 1891, Cone Denim has been a leading supplier of denim to top denim apparel brands for over 100 years. Known for its innovation, authenticity, quality and service, Cone Denim maintains operations in the United States, Mexico, Turkey and India, and has expansion initiatives underway in Central America and China to provide broader service and flexibility to customers worldwide.
International Textile Group Inc was organized in March 2004 by Wilbur Ross to combine the assets of Burlington Industries and Cone Mills.
ITG is a diverse, innovative provider of global textile solutions and distinguished market brands to apparel and interior furnishing customers worldwide. It operates four business units: Cone Denim, Burlington WorldWide (apparel fabrics), Burlington House (interior fabrics), Carlisle Finishing, and is affiliated with Nano-Tex.
International Textile Group