26.06.2008 17:54:00
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Alstyle Apparel & Activewear, a Wholly Owned Subsidiary of Ennis, Inc. Announces Expansion of Manufacturing Facilities in Mexico
Alstyle Apparel & Activewear ("AAA”),
a wholly owned subsidiary of Ennis, Inc. (NYSE: EBF) is pleased to
announce that, subject to bank and board approval, a new manufacturing
facility will be built in the town of Agua Prieta, in the state of
Sonora, Mexico. Agua Prieta is a Mexican border town close to Douglas
and Tucson, Arizona and was chosen after months of research because of
solid employee base, abundant natural resources, favorable climate and
trade corridor access to the North American Market.
Mr. Eduardo Bours Castelo, Governor of the State of Sonora, expressed
his commitment and enthusiasm for this new investment in Sonora stating, "This
new project in Agua Prieta will not only benefit the company but the
entire community. This is a wonderful opportunity to continue the
development and economic growth of Sonora, as well as a market driven
decision for Ennis. Through the years Sonora has been a profitable
investment for them and this new project confirms it.”
Mr. Antonio Cuadras, Major of the City of Agua Prieta, concurring with
Governor Bours in expressing how important this new project is for his
community stated, "The State Government and
the City of Agua Prieta have been working for more than a year with
Ennis Group exploring the possibilities of their investment in our city.
We have continuously negotiated with them and now we are both ready to
partner. It is a very important time for Agua Prieta, thousands of
families will benefit from this expansion project.”
Mr. Keith Walters, Chairman, CEO and President of Ennis, Inc. commented, "I
am delighted that this project will begin in the near future. It is the
culmination of many months work by the management of our company and the
officials of the State of Sonora Mexico and the City of Aqua Preita. I
especially want to express appreciation to Governor Eduardo Bours
Castelo, Mayor Antonio Cuadras, Secretary of the Economy - Francisco
Diaz Brown Olea and the City of Aqua Preita for their commitment for
this expansion project. I am looking forward to our continuing
relationship, as our Company expands its manufacturing facilities.”
The new facility will be leased from a local developer and will be
supplied with a combination of newly purchased equipment and existing
equipment. Total capital expenditures are estimated to be between $35
million and $40 million, with funding to be provided by internal cash
flow and, as required, existing credit facilities. The new facility will
be approximately 700,000 square feet in size and will be vertically
integrated, including: knitting, dying, cutting, sewing and
distribution. The facility will eventually have the capacity to produce
in excess of 2,000,000 lbs of fabric per week. Total employment is
expected to reach 2,500 people at full capacity. It is anticipated that
the facility will open in the summer of 2009 and be operational by the
fall of 2009. This expansion is expected to help Alstyle Apparel &
Activewear facilitate future growth and remain cost competitive in the
global active-wear market.
About Ennis and Alstyle Apparel &
Activewear
Ennis, Inc. (www.ennis.com) is
primarily engaged in the production of and sale of business forms,
apparel and other business products. The Company is one of the largest
private-label printed business product suppliers in the United States.
Headquartered in Midlothian, Texas, the Company has production and
distribution facilities strategically located throughout the United
States of America, Mexico and Canada, to serve the Company’s
national network of distributors. The Company, together with its
subsidiaries, operates in two business segments: the Print Segment
("Print") and Apparel Segment ("Apparel"). The Print Segment is
primarily engaged in the business of manufacturing and selling business
forms, other printed business products, printed and electronic media,
presentation products, flex-o-graphic printing, advertising specialties
and Post-it® Notes, internal bank forms,
secure and negotiable documents, envelopes and other custom products.
The Apparel Segment (Alstyle Apparel & Activewear) , headquartered in
Anaheim, CA, is primarily engaged in the manufacturing and distribution
of activewear apparel including t-shirts, fleece, polo shirts,
outerwear, and headwear. In addition to the California headquarters and
manufacturing facility, Alstyle has production facilities in Ensenada
and Hermosillo, Mexico. Product distribution centers include Anaheim,
Los Angeles, Chicago, Philadelphia, Atlanta, Dallas, and Mississauga,
Canada.
Safe Harbor Under The Private
Securities Litigation Reform Act of 1995
Certain statements contained in this press release that are not
historical facts are forward-looking statements that involve a number of
known and unknown risks, uncertainties and other factors that could
cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievement expressed or implied by such forward-looking statements. The
words "anticipate,” "preliminary,” "expect,” "believe,” "intend”
and similar expressions identify forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides a "safe
harbor” for such forward-looking statements.
In order to comply with the terms of the safe harbor, the Company notes
that a variety of factors could cause actual results and experience to
differ materially from the anticipated results or other expectations
expressed in such forward-looking statements. These statements are
subject to numerous uncertainties, which include, but are not limited
to, the Company’s ability to effectively
manage its business functions while growing its business in a rapidly
changing environment, the Company’s ability
to adapt and expand its services in such an environment, the variability
in the prices of paper and other raw materials. Other important
information regarding factors that may affect the Company’s
future performance is included in the public reports that the Company
files with the Securities and Exchange Commission. The Company
undertakes no obligation to revise any forward-looking statements or to
update them to reflect events or circumstances occurring after the date
of this release, or to reflect the occurrence of unanticipated events.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The
inclusion of any statement in this release does not constitute an
admission by the Company or any other person that the events or
circumstances described in such statement are material.
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