ID :
10537
Sun, 06/22/2008 - 12:48
Auther :
Shortlink :
http://m.oananews.org//node/10537
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RIL to invest USD 215 mn in US polyester plant
New York, June 21 (PTI) - Reliance Industries U.S.A., part of Mukesh Ambani-led Indian conglomerate, will invest USD 215 million and create over 200 new jobs at a newly acquired polyester plant in the U.S.
According to a regulatory filing here, Reliance Industries U.S.A. has acquired a polyester manufacturing facility in North Carolina for about 12.2 million dollars from Unifi Kinston, where it plans to invest 215 million dollars.
The investment would also generate over 200 jobs at the plant in the next five years.
Unifi Kinston L.L.C. said in the filing it has entered into a Asset Purchase Agreement with Reliance Industries U.S.A. which provides for the sale of all remaining assets and structures, located at the Unifi Kinston's polyester manufacturing facility for 12.2 million dollars.
In a separate statement, North Carolina Governor Michael F. Easley said that Reliance Industries U.S.A. would open its first North American manufacturing facility near Kinston.
"The company will create 204 jobs during the next five years and invest 215 million dollars in a plant to manufacture a resin used in the production of plastic containers and specialty polyester yarns," the statement added.
From the sale proceeds, Unifi Kinston would pay USD 3.6 million to E.I. DuPont de Nemours as part of demolition and removal obligations created by the asset sale.
U.S.-listed Dupont had a manufacturing alliance with Unifi.
Unifi Kinston expects to record a gain of about USD 6.9 million upon completion of the sale.
According to the nine-year agreement with North Carolina Department of Commerce, Reliance Industries U.S.A. could get about USD 2.22 million in maximum benefits if could generate jobs called for under the pact.
"Should the company create the jobs called for under the
agreement and sustain them for nine years, the agreement could yield as much as USD 2.22 million in maximum benefits for Reliance Industries U.S.A.," the statement noted.
Further, Unifi Kinston, a wholly-owned subsidiary of Unifi Inc, said that it anticipates the acquisition to close by the first half of its fiscal 2009.
"... however the closing is subject to customary due diligence and closing procedures and ....registrant (Unifi Kinston) makes no assurance that the sale will close during this time period or at all," the filing added.
Reliance Industries U.S.A. plans to lease part of the Lenoir County DuPont facility formerly operated by Unifi and plans to manufacture polyethylene terephthalate resin and specialty polyester yarns.
The average annual wage would be about USD 46,500 without
including benefits.
Reliance chose Lenoir County over other locations because of the availability of an existing, adaptable facility, the areas long history in the polyester industry, the available skilled workforce and training capabilities, proximity to customers, and state and local incentives which will help offset the high cost of establishing a major manufacturing facility, Reliance Industries U.S.A. President Thakur Sharma said.
According to a regulatory filing here, Reliance Industries U.S.A. has acquired a polyester manufacturing facility in North Carolina for about 12.2 million dollars from Unifi Kinston, where it plans to invest 215 million dollars.
The investment would also generate over 200 jobs at the plant in the next five years.
Unifi Kinston L.L.C. said in the filing it has entered into a Asset Purchase Agreement with Reliance Industries U.S.A. which provides for the sale of all remaining assets and structures, located at the Unifi Kinston's polyester manufacturing facility for 12.2 million dollars.
In a separate statement, North Carolina Governor Michael F. Easley said that Reliance Industries U.S.A. would open its first North American manufacturing facility near Kinston.
"The company will create 204 jobs during the next five years and invest 215 million dollars in a plant to manufacture a resin used in the production of plastic containers and specialty polyester yarns," the statement added.
From the sale proceeds, Unifi Kinston would pay USD 3.6 million to E.I. DuPont de Nemours as part of demolition and removal obligations created by the asset sale.
U.S.-listed Dupont had a manufacturing alliance with Unifi.
Unifi Kinston expects to record a gain of about USD 6.9 million upon completion of the sale.
According to the nine-year agreement with North Carolina Department of Commerce, Reliance Industries U.S.A. could get about USD 2.22 million in maximum benefits if could generate jobs called for under the pact.
"Should the company create the jobs called for under the
agreement and sustain them for nine years, the agreement could yield as much as USD 2.22 million in maximum benefits for Reliance Industries U.S.A.," the statement noted.
Further, Unifi Kinston, a wholly-owned subsidiary of Unifi Inc, said that it anticipates the acquisition to close by the first half of its fiscal 2009.
"... however the closing is subject to customary due diligence and closing procedures and ....registrant (Unifi Kinston) makes no assurance that the sale will close during this time period or at all," the filing added.
Reliance Industries U.S.A. plans to lease part of the Lenoir County DuPont facility formerly operated by Unifi and plans to manufacture polyethylene terephthalate resin and specialty polyester yarns.
The average annual wage would be about USD 46,500 without
including benefits.
Reliance chose Lenoir County over other locations because of the availability of an existing, adaptable facility, the areas long history in the polyester industry, the available skilled workforce and training capabilities, proximity to customers, and state and local incentives which will help offset the high cost of establishing a major manufacturing facility, Reliance Industries U.S.A. President Thakur Sharma said.
