Since January the possibility has existed that the US based company may reopen the plant which started operations in 2007, but was closed in March 2009.
There is much anticipation surrounding the reopening of this plant, since it used to generate about 800 jobs, which may be recovered, at least partially, if operations resume.
An article in Laprensa.com.ni states: "The presidential delegate for investments, Alvaro Baltodano, confirmed that "we are working on it, we believe that these negotiations will be finalised."
The company was launched in April 2007 as an investment by the International Textile Group (ITG), considered the world’s second largest textile manufacturers.
The total investment in Cone Denim, located in Ciudad Sandino, Managua, was about $100 million. It has a 57,000 square meter building that has a capacity to employ over 800 people. "
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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.
European investors are to acquire the Cone Denim Plant in Nicaragua, which has been closed for 3 years and could reopen in late 2012.
"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.
With an investment of $35 million and under the name Pride Denim Mills the textile the plant will restart operations in early 2014.
The textile company, which was acquired by Grupo Karim’s de Honduras announced the creation of "600 jobs to produce about 28 million yards of denim a year, which is the production capacity of the plant," noted an article in Laprensa.com.ni.
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.