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Reinvestment in Argentina

Company resisted former government’s calls to relocate manufacturing to Vietnam or China.

9th September 2022

Innovation in Textiles
 |  Obertshausen, Germany


Karl Mayer has sold a Prodye-S indigo dyeing system – the first in Argentinia – to Enod SA, based in La Rioja, as part of a major investment project by the national CLADD Group.

CLADD comprises eight industrial companies and has the largest textile production capacities in Argentina. Its business spans all stages of textile manufacturing, from spinning and fabric production to finishing, including printing and dyeing. The dyeing plant alone dyes approximately 2.7 million kg of fabric per month. The group has been in the textile business for more than 44 years.

CLADD has now expanded its existing plant with a new 10,000 square-metre-warehouse and built a new production hall for weaving. The US$36 million project has created around 330 direct jobs.

Enod is one of the companies who were not discouraged by economic policies during the four-year government of Mauricio Macri – as recently as 2019, Argentina’s Ministry of Production recommended that domestic textile producers relocate their manufacturing to Vietnam or China and re-import the goods produced under their own brands. Enod remained, took risks and invested.

New president Alberto Fernández was among those who attended the recent inauguration of the new CLADD operating units.

Enod’s new weaving mill was created by investing in a property of the Arisco factory recovered from the provincial government. In addition to the capacities for the production of woven garment fabrics, it includes an indigo dyeing plant for which Karl Mayer has supplied a Prosize sizing machine, in addition to the Prodye-S indigo dyeing machine.

“We are pleased to be able to contribute to the market expansion of our customer and to the strengthening of the national economy with our technology,” said Stefano Agazzi, regional denim specialist for the Karl Mayer Group. “With the new state-of-the-art capacities, denim can be produced in the country itself, so it no longer has to be imported.”

The 102 weaving machines at the plant are expected to produce 1.4 million metres of fabric per month, and one million metres of fabric will be dyed in the dyeing plant.

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