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Cone Denim Completes Purchase Of Parras Cone

The Cone Denim division of Greensboro, N.C.-based International Textile Group Inc. (ITG) has purchased for $27.3 million the remaining 50 percent of Parras Cone de México S.A. de C.V. - a 50/50 joint venture formed in 1993 between then-Cone Mills Corp. and Mexico-based Compañía Industrial de Parras S.A. to produce denim in Mexico.

Parras Cone began operations in September 1995 and after 18 months became the first Mexican company to receive ISO 9002 certification for quality assurance. The vertical operation currently has an annual production capacity of 28 million linear yards and a workforce of approximately 800 people.

Over the years, Cone Denim has been involved in Parras Cone's commercial activities such as production styles and customer relations. Going forward, Parras Cone's importance within Cone Denim's global manufacturing network will grow, according to ITG, which acquired Cone Mills in 2004.

ITG also said it expects current Parras Cone management will stay in place.

July/August 2006

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