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Zagis USA Commissions New Textile Mill in Louisiana

Today, Zagis USA officials were joined by Louisiana Governor Bobby Jindal and others to commission the company’s 128,000-square-foot cotton spinning mill in Lacassine, Louisiana. The ceremony marked the end of a construction project that began with a groundbreaking in July 2008.

“Completing this plant and bringing it into full production represents a tremendous accomplishment for the Zagis USA team,” said Zagis President and CEO Dan Feibus. “It would not have been achieved without the terrific support of the State of Louisiana at all levels. Now that this plant is realized, we are confident that it represents our first investment of many in this great state and its great workforce.”

The new mill in Lacassine is the first of two mills that Zagis USA committed to build in Louisiana. The location of the second mill has not yet been announced. Together, the two mills will represent at least $75 million in capital investment and will employ at least 160 people by 2012. Louisiana Economic Development (LED) estimates that 645 additional indirect jobs will be created by the mills.

Governor Jindal said, “This investment by Zagis USA is huge news for Lacassine and all of Louisiana. With this new facility, we are keeping more of our homegrown cotton in our state and turning it into valuable textile fibers to create good jobs for our people right here at home. Indeed, instead of Louisiana exporting our raw goods so others can profit, we are now creating value added jobs here and helping our farmers at the same time.

“LED estimates that when the new Zagis spinning mills are in full production they will utilize up to 15 to 20 percent of Louisiana’s cotton crop to spin yarn. This celebration today is another signal that we are working to become the best place in the world for businesses to invest, grow and succeed, while creating more opportunities for Louisianians.”

The new facility is one of the most modern open-ended spinning plants in the world and will have one of the lowest yarn production costs in the world due in part to its access to Louisiana’s cotton supply. The mill is capable of processing 50 million pounds of cotton annually. The project is not only the most significant cotton processing investment in Louisiana in decades but also is the first cotton spinning facility built in the United States in many years.

“In addition to bringing the great news of a company creating jobs in Louisiana, this project represents a significant shift for the textile industry. Companies have increasingly looked at offshore options during the past two decades,” said LED Secretary Stephen Moret. “To have Zagis USA commit to building not one but two modern cotton spinning plants using the most advanced technology in the world is a testament to our state’s ongoing economic momentum.”

Founded in 2007, Zagis USA is a partnership between North Carolina textile executives and Grupo ZAGA, one of Mexico’s most successful commercial and industrial conglomerates. The company refines unprocessed raw materials and creates value-added agricultural goods for international consumption. According to the company, Zagis currently produces more than 77 million pounds worldwide of textile fibers annually.
 

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