Picanol (Euronext: PIC) has signed an MoU (Memorandum of Understanding) with 8 March Textile Company regarding an investment program for 150 weaving machines. Under the terms of the agreement, Picanol will be supplying 150 different kinds of weaving machines from early 2004 until 2005 for a total value of approximately USD 8 million. The new deal is a further success of Picanol in Vietnam after its 126 rapier weaving machines deal last December with Vinatex (Vietnam National Textile and Garment Corporation). The MoU was officially signed today in Hanoi in the attendance of Prince Philippe of Belgium. Belgian Minister Moerman, who is accompanying the Prince on a trade mission to Vietnam, also attended the signing ceremony, along with several senior Vietnamese officials and the rest of the Belgian trade delegation.
8 March Textile Company, headquartered in Hanoi, specializes in the production and trading of yarns, working cloth, jackets, pants, bed sheeting and shirts. The contract is part of 8 March Textile Company's ongoing project to modernise its textile operation and upgrade its technology in order to meet requirements from its customers nation- and worldwide. The Picanol weaving machines will replace the existing fleet and increase capacity substantially. Last year, the Picanol Group set a record with the Vinatex order for 126 rapier weaving machines, as this represented the largest Vietnamese contract ever with a producer of weaving machines.
The delivery of the first 35 new weaving machines to 8 March Textile Company will start early 2004; the rest will be supplied in 4-5 deliveries over a period of 2 years. The production of the weaving machines will take place at Picanol's site in Ypres. 8 March Textile Company will use the new weaving machines at its processing plant in Hanoi.