Mexican conglomerate Grupo Ferrominero (GFM) has signed a Memorandum of Understanding, through its subsidiary GFM Textiles (GFMT), with Naples-based Calitri Denim Industry (CDI), part of the MCM Italian Group, to establish a joint venture, GFMT Italy, under which GFMT will hold an 80% stake and CDI will hold a 20% interest.

Under the terms of the agreement, from July GFMT Italy will expand its denim fabric supply with fabric designed and produced in Italy, as well as with fabric designed in Italy and produced in Mexico, taking advantage of the competitive advantages of both countries.