an Salvador, El Salvador -- U.S. textile company National Spinning began operations of its subdivision Fuente de Ropa de las Americas in March 2004, bringing a $2 million investment and 50 new jobs to El Salvador. El Salvador's Investment Promotion Agency, PROESA, advised the company through the evaluation and establishment process.
      The company, located in Miramar Free Zone, will develop its business in two phases. The first phase began with the opening of its plant where it will convert yarn produced by National Spinning, as well as other companies, into fabric for the El Salvadorian sweater producers.
      National Spinning is leveraging the benefits of the Caribbean Basin Initiative (CBI), which allows apparel manufactured in eligible CBI countries to enter the United States duty and quota free, if U.S. yarns, fabric, and other defined non-textile products are used in production.
      In the second phase, the company plans to produce not only fabric in El Salvador, but the final clothing product as well, and to sell the complete product as a complete package in the United States. This phase would generate 150 more jobs in El Salvador.
      Among its important clients are American retailers that import clothing and private labels.
     
      In 2001, PROESA set a goal to start new niches in the textile and manufacturing industries. One of these niches was the sweater industry. A little more than one year later, PROESA helped National Spinning select El Salvador as the location to develop its business.

H. Stoll flat-bed knitting machines have been installed at National Spinning's new sweater facility in El Salvador.

      National Spinning says that among the reasons it decided to open a factory in El Salvador were the country's competitive work force, proximity to the U.S., installation capacity, dollarized economy, labor ethics, security, financial incentives and Free Zone benefits.
      "I can't say enough about the folks at PROESA [El Salvador's Investment Promotion Agency] as well. Patricia Figueroa [Executive Director] and her team really helped with the decision to locate in El Salvador," said James W. Chesnutt, National Spinning President and CEO.
     
      Created in 2000 by the Salvadorian government, PROESA is dedicated to assisting foreign investors that seek opportunities to invest in El Salvador. For more information on PROESA, visit http://www.elsalvadorworks.com.