Cone Denim said on September 3 it will exit denim manufacturing in China by the end of 2026, shifting its production platform to Mexico as part of a broader strategic overhaul of the 130-year-old mill’s global footprint.
The company, majority-owned by Pakistan’s Artistic Milliners following a 2026 deal with Elevate Textiles, said the decision followed a review of the global denim market, its manufacturing footprint, customer sourcing needs and long-term strategy. Cone cited shifting trade dynamics, cost pressures, supply-chain considerations and geopolitical tensions as factors that had weighed on the competitiveness of its Jiaxing mill in China.
Cone currently operates three denim facilities: Jiaxing in China, which has produced fabric since 2007, and Parras and Yecapixtla in Mexico, running since 1995 and 1998 respectively. Under the plan, Mexico will become the company’s sole go-forward denim manufacturing platform. Cone said it would work closely with customers to ensure continuity of short-term fabric supply and to plan for future sourcing needs as the transition unfolds.
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“Transforming Cone Denim to meet our strategic objectives, including the planned exit from denim manufacturing operations in China, is an important step in sharpening Cone Denim’s focus on the markets, capabilities and manufacturing platforms where it is best positioned to compete and win,” Elevate Textiles Chief Executive Jeffrey Pritchett said in a statement.
The move adds Cone to a growing list of denim and apparel suppliers accelerating nearshoring to Mexico amid prolonged U.S.-China trade friction. Cone’s two Mexico mills have a combined capacity of roughly 60 million yards of denim a year, according to earlier company statements.
Industry observers note that relocating production does not automatically preserve fabric specifications, pricing or origin status for finished garments. Rules under the U.S.-Mexico-Canada Agreement require specific documentation to claim preferential tariff treatment, while separate labeling requirements mandate accurate disclosure of fiber content and country of origin. Buyers sourcing from Cone will need to verify, fabric by fabric, whether goods shifting to Mexico retain the same construction, testing history and delivery timelines as those previously produced in China.
Cone has not disclosed how much capacity will close in China, which customer fabrics will transfer, or how pricing will be affected. The company said additional transition details would be shared with customers as they become available.
The exit follows a broader pattern of denim mills consolidating operations closer to the U.S. market, as brands weigh tariff exposure, lead times and supply-chain resilience against the cost advantages once associated with Chinese manufacturing.