Alstyle Apparel & Activewear ("AAA"), a wholly owned subsidiary of Ennis, Inc. (NYSE: EBF) has built a new 700,000 square foot manufacturing facility in the City of Agua Prieta, in the state of Sonora, Mexico. Agua Prieta is a Mexican border town next to Douglas, Arizona and was chosen after months of research because of solid employee base, abundant natural resources, favorable climate and trade corridor access to the North American Market.
"This new project in Agua Prieta will not only benefit the company but the entire community. This is a wonderful opportunity to continue the development and economic growth of Sonora, as well as a market driven decision for Ennis. Through the years Sonora has been a profitable investment for them and this new project confirms it”, expressed Daniel Ortega, Chairman of the Douglas Regional Economic Development Corporation.
Mr. Keith Walters, Chairman, CEO and President of Ennis, Inc. commented, "I am delighted…it is the culmination of many months work by the management of our company… I am looking forward to our continuing relationship, as our Company expands its manufacturing facilities."
The total capital expenditures for the new facility is estimated to be between $35 million and $40 million. The new facility will be approximately 700,000 square feet in size and will be vertically integrated, including: knitting, dying, cutting, sewing and distribution. The facility will eventually have the capacity to produce in excess of 2,000,000 lbs of fabric per week. Total employment is expected to reach 3,00 people at full capacity. It will be the largest textile operation in North American and is expected to help Alstyle Apparel & Activewear facilitate future growth and remain cost competitive in the global active-wear market.
Border Security and Safety
In light of the violence occurring along the U.S.-Mexico border region, specifically in Mexico, Agua Prieta Sonora, Mexico, sister city to Douglas, AZ has remained one of the safest cities in Mexico to do business.
Agua Prieta, Mexico, unlike other Mexican border cities has yet to be included in any of the U.S. State Department Travel Alerts and/or the Overseas Security Advisory Council which provides regular and timely interchange of information between the Private Sector and the State Department concerning developments in overseas security environment.
