Dan River to stay north of the border
Staff -- Home Textiles Today, 2/26/2001 12:00:00 AM
DANVILLE, VA -Dan River Inc. has pulled out of a joint venture with Mexican textiles producer Grupo Industrial Zaga of Mexico City, and called off plans to build a textile weaving plant in Mexico.
Dan River said the joint venture was terminated by mutual agreement after it decided not to relocate a part of its textile operations to Mexico. Dan River had earlier said it would move about 275 looms and related equipment from the company's Danville, VA, headquarters to Mexico. While primarily devoted to weaving apparel fabrics, the proposed Mexican plant would have had the capability to produce some sheeting fabrics, Dan River had earlier said.
"After reanalyzation, we realized the costs were too high and the return on investment just wasn't there," said Denise Laussade, vp, finance, about the company's decision which will save between 400 and 500 jobs.
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