Tejidos Argentinos S.A.

Greenwood Mills, Inc. (GMI) of the United States received $16.2 million in MIGA guarantees for its equity investment in a joint venture cotton textile facility in Argentina. The project enterprise, Tejidos Argentinos, S.A. (TASA), has been one of the largest denim producers in the Mercosur region, The project involves restructuring, modernizing, and expanding TASA's textile operations in Argentina. IFC, which has been involved with TASA's parent corporation, Alpargatas, for the last 18 years, introduced GMI to the venture. GMI's investment will enable TASA to increase productivity and improve efficiency at its three existing plants in Buenos Aires, Catamarca, and Corrientes by installing new spinning equipment, weaving machinery, and looms. GMI will introduce modern technological know-how in product innovation and expertise in jeans washing. TASA produces and markets denim for the manufacture of jeans, colored cotton fabric, and home textile products. The enterprise's expansion will directly benefit local cotton farmers and domestic consumers. MIGA has issued coverage against the risks of currency transfer, expropriation, and war and civil disturbance.