Tango Incorporated has entered into an agreement with Global Manufacturing Group, Inc. of New York City. The total value of the contract for Global is estimated to be $3 million through the 2004 calendar year.
Global has been chosen as the exclusive manufacturing facility for XP Apparel, one of the three companies (Adidas and Roots) with the official license to produce and print garments for the US Olympic Association, up to and including the 100th Anniversary Olympiad in Athens, Greece.
Jim Sarr, Chief Executive Officer of Global stated, “Global has a contract with XP Apparel of Denver, Colorado to manufacture all Olympic apparel. We have decided to sub-contract all our printing to Tango due to the excellent quality of their work, which we believe is superior to any screen printer in America. It is the goal of Global to produce merchandise for all gender and ages for all levels of retail distribution.” A sample order of Olympic merchandise is going out to Wal-Mart in the first week of November.
Global Manufacturing is in discussion with 79 different retails stores, some of which are, Target, JC Penny's and Dillard's. Principals of Global are working to secure the final purchase orders from all level of retail interest. Based upon the initial indication of the sample orders we have sent out and produced on behalf of Global, we expect the initial orders could reach approximately two million units to be printed by Tango before the summer games begin next year.
Jeff Harden, President Sales of Tango Pacific, Tango's main subsidiary, stated, “This agreement with Global covers the 2004 Athens Olympics, but could be modified to include a long term manufacturing alliance expanding in to other project and ventures with Global.” He also said, “We expect production to pick up momentum from today right through the Olympic Games next summer.'
Global is estimating that the agreement could be modified to be a 10 year contract with Tango Pacific provided it maintain it's pricing and quality. This is all new business, in addition to the package printing and contract printing presently being done by Tango Pacific.
