Yarn mills to re-open
A textile mills in the Canadian province of New Brunswick that has been closed for nine months, after its owner became unable to pay debts, has announced that it will resume operations on August 18.
The company involved, Atlantic Yarns, has managed to re-negotiate the payments it will make to creditors, including the provincial government. The mill, in the town of Atholville, employs 50 people. The company runs a second mill in the area, which it hopes will also re-open in the coming weeks.
A more favourable exchange rate between the US and Canadian dollars, and trade agreements between Canada and a number of countries in South America are the main reasons for the revival in the firm’s fortunes.
Earlier this year, the federal government in Ottawa introduced legislation that eliminates or reduces the tariffs levied against imported apparel if it contains Canadian textiles, boosting the place in the supply chain of mills such as the ones in Atholville.
From mid-August, Atlantic Yarns is expected to import 20 tonnes of cotton per day, ramping up to 80 tonnes within a month, in anticipation of the first shipment of yarn leaving the mill in early September.
