Alstyle Apparel & Activewear Expands Manufacturing Facilities in Mexico
Alstyle Apparel & Activewear, a wholly owned subsidiary of Ennis, Midlothian, Texas, announced that subject to bank and board approval, a new manufacturing facility will be built in the town of Agua Prieta, in the state of Sonora, Mexico. Agua Prieta is a Mexican border town close to Douglas and Tucson, Ariz., and was chosen after months of research because of solid employee base, abundant natural resources, favorable climate and trade corridor access to the North American market.
The new facility will be leased from a local developer and will be supplied with a combination of newly purchased equipment and existing equipment. Total capital expenditures are estimated to be between $35 million and $40 million, with funding to be provided by internal cash flow and, as required, existing credit facilities. The new facility will be approximately 700,000 square feet in size and will be vertically integrated, including: knitting, dying, cutting, sewing and distribution.
The facility will eventually have the capacity to produce in excess of 2,000,000 lbs. of fabric per week. Total employment is expected to reach 2,500 people at full capacity. It is anticipated that the facility will open in the summer of 2009 and be operational by the fall. This expansion is expected to help Alstyle Apparel & Activewear facilitate future growth and remain cost competitive in the global activewear market.
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