Spanish textile company Tavex has merged with Brazilian denim manufacturer Santista Têxtil. Through the merger the Brazilian company hopes to widen its opportunities for expansion in countries such as Morocco, where Tavex has a factory.

“Santista will learn more about Morocco and business between the two countries is expected to grow,” said Fernando Beer, the company’s export manager. He added that collaboration between the two companies at all levels is being looked into and will include yarn production and the manufacturing of finished fabrics. Tavex currently operates in Spain and Morocco while Santista has factories in Brazil, Argentina and Chile.

As a result of the merger, the two companies will have a combined production capacity of 150 million metres of denim per year and revenues exceeding $500 million. Denim production is expected to double to 300 million metres by 2010.