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Mexican Zagis invests $75 mn in a two-phase cotton spinning project
19 Jun '08
2 min read
Zagis USA and Louisiana Economic Development(LED) broke ground on the first of two greenfield textile mills the company will build in the state.
Zagis USA, a newly formed corporation between North Carolina textile executives and Grupo Zaga (one of Mexico's most prominent industrial/commercial conglomerates) will invest approximately $75 million in a two-phase cotton spinning project that will account for 160 new jobs with average annual wages of $31,000 plus benefits.
This project represents the first significant cotton processing investment in Louisiana in many years.
"We are thrilled to have Zagis USA invest $75 million in two new facilities and generate 160 new jobs in Louisiana," said Governor Bobby Jindal.
"This is incredible news not just for Jefferson Davis Parish but the entire state, and this is another terrific step forward to making Louisiana the best place in the world in which to to raise a family, get a quality education and pursue a great career."
"Zagis chose Louisiana because of its location relative to raw material,its infrastructure - interstate,rail,ports - and the strong entrepreneurial support from Louisiana departments of Economic Development and Agriculture," said Zagis USA COO Dan Feibus.
Locating in Louisiana ensures Zagis USA will have one of the lowest yarn production costs in the nation and the world because of access to raw material; proximity to export ports and strategic freight lanes; low interest costs; state incentives and reliable power at stable, competitive cost.
An export-driven company, Zagis USA will ship a value-added Louisiana agricultural product, rather than an unprocessed raw material.
"This represents a significant shift for the cotton industry, particularly here in Louisiana," said LED Secretary Stephen Moret. "Historically most of Louisiana's cotton has been shipped out of state in raw, unprocessed form, headed for export markets. Once phase two is complete, the Zagis mills could utilize up to 15 to 20 percent of Louisiana's cotton crop to spin cotton yarn right here at home. We are very pleased to welcome Zagis to Louisiana."
Zagis USA estimates that the first phase of the project will be completed by late fall of this year. Phase two is projected to begin in early 2009. LED has been working on this investment project with Zagis for two years.
Zagis USA, a newly formed corporation between North Carolina textile executives and Grupo Zaga (one of Mexico's most prominent industrial/commercial conglomerates) will invest approximately $75 million in a two-phase cotton spinning project that will account for 160 new jobs with average annual wages of $31,000 plus benefits.
This project represents the first significant cotton processing investment in Louisiana in many years.
"We are thrilled to have Zagis USA invest $75 million in two new facilities and generate 160 new jobs in Louisiana," said Governor Bobby Jindal.
"This is incredible news not just for Jefferson Davis Parish but the entire state, and this is another terrific step forward to making Louisiana the best place in the world in which to to raise a family, get a quality education and pursue a great career."
"Zagis chose Louisiana because of its location relative to raw material,its infrastructure - interstate,rail,ports - and the strong entrepreneurial support from Louisiana departments of Economic Development and Agriculture," said Zagis USA COO Dan Feibus.
Locating in Louisiana ensures Zagis USA will have one of the lowest yarn production costs in the nation and the world because of access to raw material; proximity to export ports and strategic freight lanes; low interest costs; state incentives and reliable power at stable, competitive cost.
An export-driven company, Zagis USA will ship a value-added Louisiana agricultural product, rather than an unprocessed raw material.
"This represents a significant shift for the cotton industry, particularly here in Louisiana," said LED Secretary Stephen Moret. "Historically most of Louisiana's cotton has been shipped out of state in raw, unprocessed form, headed for export markets. Once phase two is complete, the Zagis mills could utilize up to 15 to 20 percent of Louisiana's cotton crop to spin cotton yarn right here at home. We are very pleased to welcome Zagis to Louisiana."
Zagis USA estimates that the first phase of the project will be completed by late fall of this year. Phase two is projected to begin in early 2009. LED has been working on this investment project with Zagis for two years.
Louisiana Economic Development
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