"It is a fact that this year the Cone Denim plant will be reopened. We're just waiting for the (purchase) negotiations to be completed," confirmed Dean Garcia, executive director of the Nicaraguan Association of Textile and Apparel Companies (Anitec), according to Laprensa.com.ni.
The International Textile Group (ITG), which owns the plant had to close in 2009 due to lack of market for its products following the global economic crisis. Garcia said he hopes the National Free Zone Commission will make an announcement in the coming days, reported Laprensa.com.ni.
Garcia acknowledges that it is important to ensure that the United States approves an extension to the country for ten years of tariff preference levels (TPL), because the benefit ends in 2015. TPL allows, under the CAFTA framework, the import of raw materials for making clothes which are then sold to U.S. to be exempt from taxes.
During the course of the year, the U.S. textile company will restart operations in the country.
The start-up would initially create 700 new jobs.
"The secretary of the National Free Zone Commission (CNZF), Alvaro Baltodano, and executive director of the Nicaraguan Association of Textiles and Apparel (Anitec), Dean Garcia, confirmed to the press that the reopening of the company is underway and will become official in the coming weeks,” according to an article at Laprensa.com.ni.
The textile company, a subsidiary of International Textile Group, which invested $100 million in its plant in Nicaragua, now has three interested parties; meanwhile there are still plans to reopen its operations.
The U.S. textile company Core Denim, belonging to the International Textile Group (ITG), could resume operations in Nicaragua which were suspended in March 2009, informed the government, although there is still a chance that the company will be sold, which would imply a reassessment of these plans.
Under new management and Honduran capital, the textile plant in Nicaragua will resume operations in the next few weeks.
The information was confirmed by Dean Garcia, executive director of the Nicaraguan Association of the Textile and Apparel Industry (Anitec). "We are in coordination with representatives who bought the company and we are looking to see if it is likely that operations will start before the end of this month", he said.