Posted September 24, 2014

 

GASTONIA, N.C. – Parkdale, one of the largest providers of spun yarns in the world, announced exclusively to eTextileCommunications this morning that it has acquired 100 percent of Mexico-based Summit Yarns. Formerly a 50/50 joint venture with International Textile Group (ITG) of Greensboro, N.C., Summit is located in the state of Morelos, Mexico.

 

Since its inception, Summit has been the primary supplier of ITG’s CDY (Cone Denim Yecapixtla) plant and will continue to supply the plant under a long-term agreement, Parkdale said.

 

“Our relationship with ITG has always been a strong one and our partnership is further strengthened as a result of our new agreement,” said Dan Nation, president of Parkdale International.

 

Expansion plans are already underway to more than double the manufacturing capacity of the facility in two phases. Phase One will include all new open-end spinning and support equipment, which will allow Parkdale to better meet the needs of its existing customer base, Nation said. The second phase will immediately follow with a state-of-the-art ring spinning facility, allowing the company to produce 100 percent cotton, poly cotton and heather yarns.

 

This is an excellent facility with a trained and dedicated workforce, Nation said. He added that the company believes the increase of its manufacturing footprint in Mexico will provide a low-cost platform to globally compete as more free trade opportunities expand throughout the Americas.

 

Parkdale, based here, and ITG predecessor Burlington Industries entered into the joint venture agreement in 1997 under Mexico’s Maquiladora program. Historically, Summit supplied denim yarns for the major product lines of Burlington and Cone Denim. Parkdale will continue to supply denim yarn, as well as other products in the sales yarn industry.

 

Parkdale Inc., through its subsidiaries, processes 60 percent of the U.S. annual cotton consumption, according to its website. It produces more than 8,000 tons per week of products at 29 manufacturing plants in the US, Central America, Mexico and South America.