Two of Brazil's largest textile groups, Santista and Coteminas, are likely to announce investment plans for new overseas factories in the next few weeks in an attempt to address the issue of Brazil's lack of international competitiveness. 

Last year Coteminas acquired American company Springs which is set to invest $100 million to either purchase or build a towel and bed and table linen factory. A spokesman stated that if Egypt was not suitable, it would be in China, Pakistan, India or Vietnam as there is no chance that we can make such a large investment in Brazil.

Santista Têxtil will make no substantial investment in Brazil either. At the end of 2005, it acquired Spanish company Tavex and became the world's largest jeans manufacturer with 10% of the global market. Santista intends opening factories and purchase competitors abroad. The first step will be to build a jeans factory in El Salvador, Honduras, the Dominican Republic, Nicaragua, Guatemala or Costa Rica, generating around 700 new jobs.