Zagis USA Commissions Louisiana Cotton Spinning Mill

Lacassine, La.-based Zagis USA — a partnership between majority owner Grupo Zaga S.A. de C.V., a
Mexico-based conglomerate, and several North Carolina textile executives — has completed
construction of its 128,000-square-foot spinning mill in Lacassine 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
(See ”
USA To Build Cotton Processing Facilities In Louisiana
,” June 24, 2008)
. 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 an additional 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, which is 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. Zagis has not
announced the location of the second mill.

December 15, 2009