Brazilian Companhia Industrial Cataguases, a manufacturer of cotton fabrics, is going to invest 73.5 million Brazilian reais (US$ 38.6 million) in expanding and modernizing its industrial park in the state of Minas Gerais, in southeastern Brazil.
The managing director of the company, Carlos Alberto Lazaresko, signed a protocol of intentions with the state government this week. The works and improvements should be concluded by the end of next year.
Forecasted actions include reforms of the premises and construction of a center for distribution and acquisition of machinery, equipment, furniture and appliances. A total of 195 direct jobs should be generated.
The company already employs 1,470 people. Additional production should total 1.8 million meters of finished cotton and revenues, which are forecasted to be 217 million reais (US$ 114 million) this year, should leap to 260 million reais (US$ 136 million) in 2010.
One of the company's units is undergoing improvement and expansion of the area in which the initial stage of production takes place. The area houses starching and ironing machines that prepare the yarn for spinning, and some of its premises are being adapted and receiving air conditioning.
A building will be built for Human Resources and Supplies. At another unit, the layout will be adapted and there will be construction of an electric substation and yarn storage structures.
The company is based in the city of Cataguases. The fabrics produced by Companhia Industrial Cataguases supply factories of men's shirts and clothing for women, children and adolescents.
The output is 2.5 million meters per month. The company was founded in 1936, with an average production of 15,000 meters of fabric per month. Presently, in addition to supplying the domestic market, it exports to 20 countries in the Americas and in Europe.