Brazil makes 'rainforest' condoms
The health ministry says the move will help preserve the largest rainforest in the world.
It will also cut dependence on imported contraceptives, which are given away to fight Aids.
The Brazilian government has one of the biggest programmes in the world to distribute free condoms in the fight against the disease.
The new state-run factory is in the north-western state of Acre, and will initially produce 100 million condoms a year, which will be known by the name Natex.
Officials believe that not only will it generate income for Amazon residents, but it will involve using a product which is widely available and can be obtained without destroying large areas of the rainforest.
The latex will come from the Chico Mendes reserve, an area named after the famous conservationist and rubber tapper who was shot dead in 1988 by local ranchers.
The factory will benefit at least 500 families and provide 150 jobs in the town of Xapuri which has a population of around 15,000 people.
The health ministry says the condoms will be the only ones in the world made of latex harvested from a tropical forest, and will reduce the reliance on foreign imports.