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Canadian Mill Denis Closure Rumors

A Chinese-owned textile mill near Montreal with an erratic history since it first opened about six years ago, denies it is closing and up for sale.

MONTREAL — An official at a Chinese-owned textile mill near Montreal with an erratic history since it first opened about six years ago, denies it is closing and up for sale.

Production at Sinatex (Canada) Inc. is being temporarily halted for restructuring, although inventory continues to be sold, according to plant spokesperson Allen Chen.

He said Sinatex, located in Drummondville, Quebec, about 70 miles northeast of Montreal, is awaiting a decision by parent company China WorldBest Group Co. Ltd., of Shanghai and that an announcement would be made within the next two weeks.

This is in contrast to another plant official who told the Drummondville media last month that because of the strength of the Canadian dollar, the plant was being closed to maintain WorldBest manufacturing operations in Mexico and commercial activities in California.

The 200,000-square-foot knitted fabrics plant was supposed to create as many as 400 jobs, but never employed more than 90. In May 2004, the plant was temporary closed after a first collective agreement was signed and operations have been sporadic since.