Edinburg officially launches the start of construction for Santana Textiles long awaited facility today.
City officials and stakeholders will hold a groundbreaking for the new complex at 5 p.m. at the city’s North Industrial Park in north Edinburg. The groundbreaking will be followed by a reception and fashion show meant to display Santana products, which will take place at the city’s auditorium located next to City Hall.
“We’re starting to really see this come to fruition,” said Pedro Salazar, Edinburg EDC executive director. “You know the impact, you know the potential, so it’s exciting. There are lot of exciting things going to happen in Edinburg, so that’s encouraging.”
Brazil-based Santana is considered to be one of the top-10 denim manufacturers in the world in terms of production volume, according to the EEDC.
Santana is slated to construct their 775,000-square-oot denim manufacturing plant at the City’s industrial complex over the next 18 months, according to Salazar. The upcoming plant will create 800 jobs.
Santana’s complex will be completed in four phases within the next five years. The company is slated to invest $170 million in Edinburg, with a capital investment of at least $80 million, according to the EDC.
Edinburg’s plant will be Santana’s sixth, and most technologically advanced facility to date, according to the EDC. The company currently has four plants in Brazil and one in Argentina. The company will work with FibeRio, located within UTPA’s Rapid Response Manufacturing Center (RRMC) to research and potentially develop new materials as Santana’s plant begins production.
“The first thing they will start to do is the groundwork,” Salazar said about phase I of the project. “Following the foundation, they will start erecting (walls), and start building the facility. Part of the thing, is that some of the equipment is so big, they are going to have to start building around equipment…and then there’s all the little things that will make up the plant.”
The Board of Edinburg’s EDC completed the final hurdle towards construction of the new facility earlier this summer. At the request of the EDC, City Council members eventually designated Santana Textiles as an “Enterprise Project”.
Under the Enterprise designation, Santana would receive a significant reimbursement on the state sales tax portion they pay for materials or equipment used for construction.
The amount reimbursed would depend on the number of jobs created. Santana could stand to get reimbursed about $2,500 per job with a “ceiling” about $1.25 million, according to the city.