Update: Coltejer Shutters Production of Non-Woven Fibers, Eyes ‘Reinvention’
Medellin-based textile giant Coltejer revealed in separate July 15 and July 17 filings with Colombia’s Superfinanciera corporate oversight agency that it has decided to suspend production of non-woven fibers and begin a process to “reinvent” its whole business model.
“Taking into account the impact that the company has suffered due to issues related to [below-cost textiles and clothing] smuggling, the [Covid-19] pandemic and recent [violent ‘Comite del Paro’ strikes and road blockades] in the country, as of this date, the productive operation of the ‘non-wovens’ line is suspended,” according to Coltejer.
“In addition to the difficulty presented, we assume the situation as a challenge that allows us to transform the business and reinvent ourselves in response to the needs of the current market.
“The company is making every effort to resume its economic activity as soon as possible, of which notice will be given in a timely manner,” the company added.
In a follow-up filing July 17 with Superfinanciera, Coltejer revealed that shuttering the non-woven fibers production line will cut its monthly corporate-wide gross income by about COP$1 billion (US$262,000), “equivalent to 49% of current income.” Monthly profit losses from the non-woven-fibers shutdown would amount to COP$600 million (US$157,000), “equivalent to 19% of sales,” according to the company.
Earlier this year, Coltejer revealed it had suffered a full-year 2020 net loss of COP$94.6 billion (US$26.8 million), worse than its net loss of COP$24.9 billion (US$7 million) in 2019 (see Medellin Herald February 11, 2021).
Sales in 2020 also dropped to COP$74.8 billion (US$21 million), down from COP$141.9 billion (US$40 million) in 2019.
Coltejer also announced late last year (see Medellin Herald December 18, 2020) that it decided to abandon its pioneering textile factory in the southern Medellin suburb of Itagui, shifting its remaining operations to Rionegro, Antioquia — and selling the Itagui properties.
In line with that shift to Rionegro, Coltejer announced today that it signed a commercial administration trust agreement with Credicorp Capital Fiduciaria SA as part of its Itagui property sale contract with Actual Corp Colombia SAS and Constructora Capital Medellín SAS. Coltejer simultaneously obtained a new loan from affiliate Coltejer Comercial SAS totaling COP$300 million (US$78,600), the company added.
