US textile major ITG begins textile unit construction in Zhejiang

14 Jul '05

3 min read

Leading US textile maker, The International Textile Group (ITG) begin constructing denim clothing plant in China, in the middle of textile trade tension era between the two countries.

The company had a ground-breaking ceremony yesterday for what will be a state-of-the-art factory in the city of Jiaxing in East China's Zhejiang Province. Investment in the project is estimated at US$95 million.

The operation will be a joint venture called Cone Denim (Jiaxing) Ltd, with 51 per cent owned by a subsidiary of ITG and 49 per cent owned by a subsidiary of Novel Holdings Limited. Novel's principal China businesses include yarn and knitwear, and brand names such as Michael Kors and Pepe.

Wilbur Ross, chairman of ITG, said this initiative would establish another major global site in line with the company's strategy of expansion.

The Cone Denim (Jiaxing) facility is expected to be operational by late next year and will have a production capacity of approximately 30 million yards annually. When operating at full capacity, the plant is expected to produce annual revenues of about US$100 million. The factory will employ about 700 people.

John L. Bakane, president and CEO of Cone Denim, said the China operation will provide the firm with the ability to expand its global reach so it can better serve its customers. The China operation will mainly produce textiles for exports.

The venture is in line with plans to transform ITG into a global textile company, producing and selling products around the world. ITG has investments in Turkey, India and Viet Nam.

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