Dominion Textile cancels its India joint venture.MONTREAL--(BUSINESS WIRE)--Dec. 11, 1996--(ME,TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DTX.) Dominion Textile The Dominion Textile Inc. or Domtex was a major Canadian textile manufacturer that was founded in 1905 and closed in 1998 when its remains were purchased by the American Polymer Group, at the time headed by Jerry Zucker. Inc. announced today that it and the LNJ Bhilwara Group of India have mutually agreed not to proceed with their joint venture. The agreement called for Swift Denim and Bhilwara to construct a denim manufacturing facility in the Indian state of Madhya Pradesh Madhya Pradesh (mäd`yə prä`dĭsh), state (2001 provisional pop. 60,385,118), 119,010 sq mi (308,240 sq km), central India, between the Deccan and the Ganges plain. The capital is Bhopal. . The joint venture has experienced delays and an alternative became necessary to meet targeted product and service levels to Swift's Far East customer base in a time frame consistent with its original plan. A number of steps will be taken to meet targeted service levels and future growth. First, Swift Europe, the corporation's European denim affiliate, which has well-developed manufacturing capabilities and extensive experience in the development of high- end products, will make some of its value-add production available for Swift's customers in the Far East. Second, Swift North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. will accelerate the conversion of existing basic denim capacity to value-add production. Third, it will continue to evaluate investment opportunities to support growth in emerging markets around the world. "This decision has been taken so that our service to our customers in the Far East would not be compromised," says John A. Boland III, President and Chief Executive Officer. "We are convinced these are the most timely strategic alternatives to serve that part of the world. All costs associated with this joint venture have been expensed and this decision will have no financial impact on the corporation." Swift and Bhilwara have agreed to explore commercial opportunities in the future if mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" . Dominion's joint venture with the Sauler Group to build a state-of-the-art nonwoven non·wo·ven adj. Made by a process not involving weaving. Used of textiles. n. Material or a fabric made by a process not involving weaving. facility in Argentina is progressing on plan. Production start-up is scheduled for the fall of 1997. Dominion Textile Inc. with corporate offices in Montreal, Quebec, is a major international manufacturer of textiles and textile-related products, conducting business in over 50 countries worldwide. -0- NOTE: This press release is also available at http://www.domtex.com CONTACT: Dominion Textile Inc., Montreal Colleen col·leen n. An Irish girl. [Irish Gaelic cailín, diminutive of caile, girl, from Old Irish. Smith, 514/989-6012 INTERNET: http://www.domtex.com |
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