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.
The presidential delegate for investment, Alvaro Baltodano, revealed that there are several companies interested in the acquisition of Core Denim. "’We are working on (re) opening, this is a guarantee that must be given to investors who will analyze the feasibility of returning, we have three to four companies interested, remember that it is an investment of more than 100 million U.S. dollars and there are US, Asian and South American investors interested’, said Baltodano to the local press.
The reopening of Cone Denim has been announced since early 2011, but so far has not materialized.
Cone Denim began operations in 2008 with an investment of 100 million dollars. However, it was closed in March 2009, leaving nearly 700 unemployed Nicaraguans. The closure of the company occurred on the grounds of lack of market due to the international economic crisis, according to the digital edition of the newspaper La Prensa.
Source: elnuevodiario.com.ni
More on this topic
January 2011
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.
April 2012
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.
August 2011
Negotiations between the government and representatives of Core Denim might not conclude until the end of the year.
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.
March 2009
The US textile company, Cone Denim, temporarily closed its 850-employee plant in Nicaragua.
The denim manufacturing plant, International Textile Group, was inaugurated in the middle of last year with an investment of $100 million.
Alvaro Baltodano, president of the Free Trade Zones Corporation of Nicaragua, in an article in Prensalibre.com, said that "Code Denim executives stated that it was a ‘temporary closure’ and that it will resume its operations in 'a few weeks.’"
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