History

The life and development of Compañía Industrial de Parras, S.A. de C.V. ("CIPSA") are inseparably linked to the history of what is now the state of Coahuila, as well as to Mexico's national history.

Its origins go back to 1597, when only woolen textiles were produced, since cotton was not grown in the northern region of New Spain.

In 1834, the Congress of the State of Coahuila and Texas granted a ten-year concession to machine manufacture all kinds of cotton and wool cloth.

In 1857, the Aguirre family began the reconstruction necessary to install 100 hydraulically-run Danford looms.

On February 17, 1870, the Madero y Cia. firm, of Evaristo Madero and Lorenzo González Treviño, bought the textile factory, then named La Estrella. The new owners concentrated on remodeling and adapting the old buildings, and acquired new machinery to replace the previous equipment.

During that year of 1899, Madero y Cia. decided to separate Fábrica La Estrella ("FLESA") from the rest of their industrial group, due to the positive potential growth they foresaw in it. And so, on September 13, 1899, CIPSA was legally incorporated. Back then, the factory consisted of the preparation, spinning, dyeing, weaving and bleaching processes.

 

In 1925 FLESA already had 890 looms and figured among the ten largest textile factories in Mexico.

In 1927, a sales department was established, and special attention was given to agencies set up in major cities throughout Mexico since 1897.

In 1946, CIPSA was the first to introduce the sanforizing process in Mexico.

In 1949, it started manufacturing warp yarn to produce denim, which, more than just a fabric, represented a clothing revolution in the second half of the twentieth century.

The great international demand for denim during the 1960's and 1970's led to great advances in textile technology. Of course these innovations were incorporated into the CIPSA operations.

In 1973 a joint-venture ("JV") was established with the Williamson Dickies Manufacturing Company, which gave birth to Parras-Williamson, S.A. a garment maquiladora in Parras, Coahuila.

In 1981 the Company went public, placing 20% of its capital on the Mexican Stock Exchange. The capital that was raised was used to upgrade the company's operations.

Another maquiladora plant was built in the city of Zacatecas in 1987, this one called Prendas Textiles, S.A. de C.V., which was later relocated to Parras in 1994.

In 1993, with the imminent signing and latter passing of NAFTA, the Company decided to broaden its horizons and look for a foreign strategic partner. An agreement with Cone Mills Corporation, the largest and most prestigious denim producer in the world, was signed. The agreement consisted of two main points: 1) Cone invested US$22M in CIPSA in exchange for a 20% stake, and 2) the two companies agreed to build and operate a state-of-the-art 50/50 JV factory, Parras Cone the Mexico (PCM) which to this day is still an example of the denim industry.

In 1994 the laundry Lavapar, S.A. de C.V. was built to provide washing and ironing services for the garments factories. That same year, the denim plant now called Hilaturas Parras, S.A. de C.V. ("HILPAR") located in Puebla, was acquired.

1996 - 1998 CIPSA decided to focus exclusively in the production and marketing of denim fabric (with a small proportion of twill), which led to the sale, or closure of all apparel manufacturing operations. The HILPAR and FLESA factories were modernized and expanded.

Then in early 1999, another modern and large denim plant was purchased. It is located in Torreón, Coahuila, and is now called Parras de la Laguna ("PARLASA").

Today, Compañía Industrial de Parras, S.A. de C.V., with its four competitive plants (one at 50% ownership) is among the major denim producers in the world with annual installed capacity of over 100 million linear meters, recognized for the its commitment to quality, and the diversity of products it offers its clients, exporting around 80% of its production.