Brazilian textile mill Tear Têxtil Indústria e Comércio is going to invest 36.4 million Brazilian reais (US$ 19.7 million) in the state of Minas Gerais, in southeastern Brazil. The figure will be invested in concluding the company's expansion process, which started in October last year and should end in 2011.
The company directors, José Eugênio da Fonseca and José Canuto de Oliveira, signed a protocol of intention with the government of the state this week.
The Minas Gerais Development Bank will supply 15 million reais (US$ 8 million) and the remainder will come from the company itself. The funds will be used in construction, purchasing of machinery, equipment, furniture and utensils, with the aim of increasing production capacity to 22.5 million linear meters per year. Presently, the company manufactures 1.65 million linear meters of fabric each month.
The investment also includes transferring the company's operations from the municipality of Contagem to the city of Paraopeba. "It is a municipality with a textile vocation, it already is home professionals who are familiar with the procedures of the industry, which ranks among the five leading segments in terms of job generation," explained Fonseca.
With the expansion, the company aims to obtain revenues of 110 million reais (US$ 59 million) in 2010 and generate 850 direct jobs.
Out of Tear's total production, 45% consist of indigo fabric and 55% are other fabrics, such tricoline, viscose and serge. The company was established in 1999 and operated initially with fabric sales.
In that same year, it leased a factory complex and started making fabrics as well. Presently, Tear has 35 representatives across Brazil and abroad, plus two stores in the city of Belo Horizonte, capital of the state of Minas Gerais.