Unifi Inc. has signed a non-binding letter of intent to form a joint venture (JV) with the owners of Complast S.A. and Technologia Textil Avanzada (TTA) both based in Guatemala. Unifi will own 51 percent of the JV and the Complast and TTA owners will hold the remaining 49 percent. Complast owns a bottle processing plant and produces flake and chip under the EuroPET name; and TTA manufactures partially oriented polyester yarns as well as textured yarns under the EuroFIL name. These two business will be contributed to the JV under the current proposal and the intention is to expand the operations if the JV goes ahead.
“Central America has been a region of focus for brands and retailers over the past few years, as apparel programs are sourced closer to the U.S.,” said Tom Caudle, president, Unifi. “The growth in the region is key to our strategy of building our Repreve and other value-added brands.”