China : Shandong Daiyin Textile to set up factory in Guatemala

Shandong Daiyin Textile Group Inc. announced on January 4, that the company will invest US $35 million to build a cotton yarn factory in southern Guatemala, which is expected to provide 1,200 local jobs.

It is learned that Daiyin plans to start construction of the cotton yarn factory in Escuintla, Guatemala in March this year, and production equipments will be in place by the end of 2007.

The reason for the company to build this factory is they signed a cooperative agreement with Ghimly Group, Singapore, the latter promised to buy from Daiyin most of their production made in Guatemala.

In May 2004, the five countries (Guatemala, Costa Rica, and other countries) signed a free trade agreement with the US. According to the Agreement, if the garment fabrics were made from cotton yarns from these countries, then the clothing will enjoy zero tariffs to enter the US market.

It has been learned that since the agreement came into force, the US has great demand for yarns from these countries.
 
 
Fibre2fashion, News Desk - China