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Article: Textile producers find common thread in Mexico. (Collins and Aikman Corp; Guilford Mills Inc.)
- Article from:
- Business North Carolina
- Article date:
- August 1, 1995
CopyrightCOPYRIGHT 1995 Business North Carolina. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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After the Mexican peso's plunge last year, some critics of the North American Free Trade Agreement jumped to their feet and cried, "We told you so!"
The ensuing economic crisis made both Collins & Aikman Corp.'s and Guilford Mills Inc.'s decisions to invest in Mexico look downright reckless. But are these two textile companies ruing the day they heard of NAFTA? Heck no.
The peso's plunge, while devaluing the investment on their balance sheet, has significantly cut the operating costs of their Mexican plants. "So far [the Mexican investment has] worked out very well," says Terrence Geremski, Greensboro-based Guilford's treasurer and chief financial officer. ...