Brazil-based denim manufacturer Santana Textiles is set to begin construction on its first manufacturing facility in North America, located in Edinburg, Texas. The company announced in 2008 that the state of Texas would invest $1.65 million through the Texas Enterprise Fund to help build the plant (See " Texas Invests In Santana Textiles' First US Plant," July 8, 2008). Santana Textiles is South America's largest denim fabric manufacturer, having operated for more than 50 years, and the fifth-largest such producer globally. Its new operation in Edinburg represents a $171 million investment and is expected to create 800 jobs.

According to Santana Textiles President "Neto" Delfino, the company considered locations throughout North and South America but ultimately selected Edinburg because of its proximity to cotton growers and to important denim markets in Mexico and Los Angeles; the value of the "Made in the USA" label; and the city's support of the project. "After evaluating all the sites, we decided that Edinburg offered all the right conditions to expand our denim manufacturing operations in the U.S.," Delfino said. "From the start, Mayor Richard Garcia, the City of Edinburg, the Edinburg Economic Development Corp. and Hidalgo County made it clear they wanted our company in Edinburg."

"A lot of people have given up on the textile industry in the United States, and this proves you can be competitive with the right situation," said Pedro Salazar, executive director, Edinburg Economic Development Corp. "Santana is not a textile maker, it's an advanced manufacturing company that just happens to be in the textile industry. These guys are all about technology and advanced manufacturing, and that's how they're able to be competitive."

July 13, 2010