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Zagis USA Commissions Cotton Spinning Mill In Louisiana

Zagis USA -- a partnership between majority owner Grupo Zaga S.A. de C.V., Mexico, and several North Carolina textile executives -- has completed construction of its 128,000-square-foot spinning mill in Lacassine, La., and has begun production of cotton sales yarn. The facility is the first of two mills in Louisiana in which Zagis will invest a total of $75 million. Combined, the two mills will employ at least 160 workers by 2012, and the Louisiana Economic Development Department (LED) estimates the mills also will generate 645 indirect jobs.

"This investment by Zagis USA is huge news for Lacassine and all of Louisiana," said Louisiana Governor Bobby Jindal, who participated in the commissioning ceremony. "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."

According to Zagis, the facility, located in a 200-acre industrial park in Jefferson Davis Parish in southwest Louisiana, is one of the most modern open-end spinning plants globally, and yarn manufacturing costs will be among the lowest worldwide, partly because of the mill's access to the state's cotton supply. Annual production capacity will total 50 million pounds of cotton.

"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," Jindal said.

January/February 2010

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