Loan for Moda Express Group to install cotton mill

(Caracas, May 11, 1993). -- A modern cotton mill, equipped with the most advanced technology will be installed in El Alto near La Paz, and cofinanced by CAF through a US$2.3 million loan.

The approval was giving in the 78th meeting of the CAF Board held in Caracas, Venezuela, on May 7.

The loan will be granted to the private company Mey Ltda, a member of the Moda Express Group of textile companies dedicated to production of textiles and cotton clothing, which serves domestic and international markets.

Currently this group, formed by four independent companies, is the largest exporter of processed products in La Paz. The main market for its products is the United States, with 65% of its total production placed in that country.

The cotton mill will produce 776,000 kg of combed cotton yarn annually and create 50 direct jobs.

The project will also increase the value added of the cotton, raw material which is generally exported without any additional processing.

The cotton required for production will come mainly from the Santa Cruz area.

Total cost of the project is US$9.2 million which will be cofinanced by CAF, the Inter-American Investment Corporation and shareholder contributions.