Chinese textile firm investing US$410 million in US state of Arkansas, creating 800 jobs

A Chinese textile company announced plans Wednesday to transform a former television factory in east Arkansas into its first North American facility, a $410 million project that’s expected to create up to 800 new jobs in the struggling Mississippi Delta region.

Shandong Ruyi Technology Group said it would begin renovating the 1.4 million-square-foot former Sanyo factory in Forrest City later this year into a facility where Arkansas cotton will be spun into yarn for textile use. The Sanyo factory has been vacant since late 2007, when the company shut down production.

“This is not only great for Arkansas, but it’s ... going to give an economic boost to a region that deserves it and has worked very hard for it,” Governor Asa Hutchinson said at a news conference with company officials at the state Capitol.

Production is expected to begin at the new facility by mid-2018, and the company plans on processing more than 200,000 tonnes annually of Arkansas cotton. Arkansas is providing up to US$4 million in cash incentives and US$11 million in payroll rebates. The company will also receive sales tax refunds on building materials, taxable machinery and equipment associated with the project. The project is also receiving about US$1 million in local incentives.

“Our manufacturing facility in Arkansas will become the first milestone of Ruyi’s steps into the United States,” Yafu Qiu, the company’s chairman, said in a statement. “We are dedicated to provide the product with cutting edge technology and superior quality.”