Tamil Nadu-based textile company, Shri Govindaraja Textiles, is investing $40 million in the US state of North Carolina to relocate its operations.
Shri Govindaraja Textiles (SGT), which is a part of the Jayavilas Group in Aruppukottai, Tamil Nadu, will be relocating its textile operations in Rockingham County.
''With a strong labour force and proximity to cotton-growing regions and ports, Shri Govindaraja Textiles will succeed in North Carolina,'' North Carolina Governor Pat McCrory said in a statement.
''The company will not only buy North Carolina cotton, but will produce the combed yarn here as well,'' said the North Carolina commerce secretary Sharon Decker.
The company will be located in an 180,000-square-foot building at 325 Summit Road that was formerly owned by carpet manufacturer Karastan Inc, according to an announcement from the governor's office.
The North Carolina Department of Commerce's Rural Infrastructure Authority Board has awarded a $750,000 Community Development Block Grant to the City of Eden to assist the company with up to 50 per cent of upfit costs to the building.
''Innovative companies such as SGR Textiles are bringing new machinery that will be put to good use by our talented workforce in Rockingham County,'' the governor said.
SGT has 14 manufacturing units spread across two states in South India and a total installed capacity of 400,000 spindles, with the latest machineries.
Although a traditional textile mill, SGT has also achieved better operational efficiency and savings in labour costs. The company manufactures combed or carded yarn ranging from 20s to 160s counts, the governor's office said.
''SGT has decided to set up a modern yarn manufacturing facility in Eden after an extensive search and comparative study that we undertook amongst nine different states and various counties,'' said Ramkumar Varadarajan, managing director of SGR Textiles.
''Shri Govindaraja Textiles' decision to expand will bring needed jobs to our community and help continue our rich tradition of manufacturing high-quality textile products,'' said Senator Phil Berger.
The company is mainly engaged in the manufacture of cotton yarn, polyester yarn, polyester cotton and polyester viscose blended yarn.