Greensboro, NC, June 6, 2006 -- International Textile Group, Inc. (ITG) announced today that its Burlington WorldWide division plans to build a state-of-the-art cotton manufacturing complex in DaNang, Vietnam. The complex will be a joint venture operation called Burlington Phong Phu Supply Chain City, 60% owned by a subsidiary of ITG (a WL Ross & Co. company) and 40% owned by Phong Phu Corporation, one of the largest textile and garment enterprises in Vietnam. The investment will exceed $80 million USD.
ITG began its exploration within Vietnam last February through its relationship with the Vietnam National Textile and Garment Corporation (Vinatex). Mr. Le Quoc An, chairman of Vinatex, was instrumental in facilitating the relationship and agreement with Phong Phu.
Supply Chain City will offer apparel customers a total supply chain solution from fabric to finished garments. The vertical operation will focus on the production of cotton, bottom-weight fabrics and finished garments. Capabilities will include weaving, dyeing and finishing operations as well as garment sewing and wet processing.
Supply Chain City is expected to be operational within the next 18 months with a dyeing and finishing capacity of 60 million yards. The complex will employ more than 1500 people.
¡°Vietnam is a country at the forefront of growth and provides an excellent platform for launching Burlington Phong Phu Supply Chain City,¡± commented Kenneth T. Kunberger, President for Burlington WorldWide. ¡°Known for its complex needle, this region offers distinct skills in intricate sewing and apparel production. Supply Chain City brings together Burlington¡¯s extensive fabric expertise with Phong Phu¡¯s garment knowledge offering customers a unique, full-service garment solution.¡±
Wilbur L. Ross, Chairman of ITG said, ¡°Vietnam is becoming an increasingly important resource for garment production. Its pending membership in the World Trade Organization will be critical to fully realize the future contributions of this country. We are pleased by last week¡¯s U.S. trade agreement with Vietnam and urge the continued progress towards the country¡¯s entry into the WTO.¡±
The Supply Chain City joint-venture partnership will be formally announced later today during the official signing ceremony in Ho Chi Minh City. Mr. Tran Quang Nghi, General Director of Phong Phu Corporation and Mr. Joseph Gorga, President and CEO for ITG presided over the ceremony which included government dignitaries and the media.
Burlington WorldWide (BWW), an International Textile Group Company, is a leading provider and marketer of technology and fashion driven products for the Menswear, Womenswear, Activewear, Uniform and Barrier markets. With offices Worldwide, BWW provides textile innovations and solutions to its clients and partners globally.
International Textile Group, Inc. (www.itg-global.com) was organized in March 2004 by Wilbur L. Ross to combine the assets of Burlington Industries and Cone Mills. ITG is a diverse, innovative provider of global textile solutions and distinguished market brands to apparel and interior furnishing customers worldwide. ITG operates four business units: Cone Denim, Burlington Worldwide, Burlington House and Carlisle Finishing.
Phong Phu Corporation is a state-owned company and member of VINATEX. Started in 1965, it operates today as one of the largest textile and garment enterprises in Vietnam. As a diverse manufacturer its products include a wide range of fabrics, yarns and garments.