Vicunha Textil has purchased a new production site in San Juan, in West Argentina. The estimated sum invested by the Brazilian denim manufacturer for the whole operation will be around $ 40 million and includes acquisition and modernization of machinery as well as renovations of the spinning and weaving facilities, and is aimed at increasing production to two million meters a month. Right now, Vicunha's productive capacity is 14-15 million meters a month in denim plus 3 million meters a month in flat fabrics. The acquisition is expected to generate about 400 direct new jobs and around 1,500 indirect ones.

Vicunha counts now, in addition to the newly acquired plant, three own plants in Northeast Brazil and one in Ecuador. According to the company, following this acquisition Vicunha considers itself as the second world’s largest denim and twill maker and a world leader in this market segment. Each of the five plants will operate 24 hours a day, 7 days a week.

“An agreement signed in February of this year secured a purchase option for Vicunha,” explains Thomas Dislich, Director of Vicunha’s European branch, Vicunha Europe, while referring to the acquisition in the neighboring country. “During the last five months, the Argentina group passed its production on to Brazil. Having now formalized the deal, it becomes a 100% subsidiary of Vicunha Brastex, the parent company of Tintoria Ullum Tejeduria Galicia and Tejeduria Panama, which are the company's division plants for weaving, dying and finishing.”