NEW YORK: WestPoint Home has signed a letter of intent to purchase all of the home textile assets of Manama Textile Mills in Bahrain; WestPoint Home CEO Joseph Pennacchio said here on August 2.
He said "Manama Textile Mills has developed a world-class bedding operation that is completely vertical, with state of the art equipment, and is currently an important supplier to WestPoint Home. We are delighted that we will be moving forward with Hamid Nishat and have the opportunity to continue to build upon the outstanding operation that he has established.
"Bahrain has a stable economic and political environment and provides a low-cost platform that will allow us to compete anywhere in the world. The free-trade agreement between the U.S. and Bahrain, which eliminates duties on textile products produced in Bahrain, is an additional benefit of this acquisition," Pennacchio noted.
Hamid Nishat, CEO of Manama Textile Mills, said: "We have an excellent relationship with WestPoint Home and I am pleased to have reached this letter of intent with a company of their caliber for our home textile operations. We have made significant investments over the past few years and are proud of the operation that has been created. I am looking forward to being able to focus my energies on the continued development and expansion of our denim business."
Pennacchio added that the prospective acquisition of these facilities will be another significant step in our plans to establish their own production capabilities overseas and they were also happy to report that our towel production in Lahore, Pakistan is scheduled to be operating at full capacity in the first half of 2007.