Santana Textiles, the fifth largest producer of denim in the world, has chosen South Texas as the location for its first manufacturing facility in North America. Santana is headquartered in Brazil and has operated in the South American textile market for over 50 years. Its new operation in Edinburg, Texas represents an investment of $171 million. The investment is expected to create 800 much-needed jobs in a region struggling with some of the highest poverty rates in the state.
The company selected Edinburg after considering locations throughout North and South America. According to Santana Textiles President “Neto” Delfino, the company chose Edinburg because of the state and local incentives, as well as the city’s proximity to cotton growers. “After evaluating all the sites, we decided that Edinburg offered all the right conditions to expand our denim manufacturing operations in the U.S.,” said Delfino. “We couldn’t find a better partner than the State of Texas and the City of Edinburg.”
Texas authorities approved a variety of incentives. The State of Texas provided a $1.65 million grant from the Texas Enterprise Fund. The County of Hidalgo provided a $1.7 million tax reimbursement. The City of Edinburg provided a $2.5 million tax abatement. And the Edinburg Economic Development Corporation provided land and infrastructure grants valued at $5.05 million.
The Rio Grande Valley of South Texas, historically reliant on textile production for a large percentage of its employment base, was forced to transform when globalization devastated this local industry. The Santana Textiles project represents an important return to the region of a major employer in this sector.