Rio, January 14, 2004 (Agência Brasil - ABr) - The National Economic and Social Development Bank (BNDES) will finance the expansion of productive capacity in units belonging to the Vicunha Group in the states of Rio Grande do Norte and Ceará. The resources will be on the order of R$ 106.7 million and are expected to generate 1.2 thousand direct jobs.

With the expansion, the group should produce an additional 1.7 million meters of blue denim and strengthen its position among the world's five largest manufacturers.

The financing corresponds to 41.2% of the total that will be invested by the compnay and will also create 50 direct jobs in the state of São Paulo, as well as 3 thousand indirect jobs.

The project will permit the group to increase its production of blue denim, a fabric used to manufacture blue jeans, from 7.5 to 9.2 million meters. Most of the production will go to the United States and Europe, where the firm has sales representatives.

The Vicunha Group is the largest textile producer in Brazil, where it controls 27% of the market. (DAS)