Fresh impetus for US textile industry
On May 2, Indias Shri Govindaraja (SGT) Textiles announced its intention to invest $40 million in a new textile operation in Rockingham County, North Carolina, creating 84 jobs over the next two years. A part of the largest spinning group in India, SGT already operates 14 manufacturing units across two states in Southern India, boasting an installed capacity of 400,000 spindles.
On May 2, Indias Shri Govindaraja (SGT) Textiles announced its intention to invest $40 million in a new textile operation in Rockingham County, North Carolina, creating 84 jobs over the next two years. A part of the largest spinning group in India, SGT already operates 14 manufacturing units across two states in Southern India, boasting an installed capacity of 400,000 spindles.
Following investigations in nine different states and various countries worldwide, North Carolina was chosen due to its input cost advantage and skilled workforce, as well as its proximity to cotton growing regions. SGT has committed to buying US cotton.
According to a study by Stateline, in 2013 companies from Brazil, Canada, China, Dubai, the UK, India, Israel, Japan, Korea, Mexico and Switzerland, as well as domestic businesses, announced plans to open or expand textile plants in Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Virginia. The Southern States are particularly attractive owing to tax breaks, reliable utilities, modern ports and airports, all complemented by a dependable, skilled workforce.
Last year nine textile firms announced plans to build or expand plants in North Carolina, to the tune of $381 million. The state offered a total of $4.4 million in grants to the nine companies.
