Posted May 5, 2014
EDEN, N.C. – India-based Shri Govindaraja (SGR) Textiles plans to locate a cotton yarn spinning plant here with a $40 million investment that is expected to create 84 jobs over the next two years.
Last year, companies from Canada, China, India and another with a Mexico connection all announced plans to invest in yarn manufacturing plants in the U.S.
The company will locate in an 180,000-square-foot building that was formerly owned by carpet and rug producer Karastan, Inc.
North Carolina Gov. Pat McCrory and N.C. Commerce Secretary Sharon Decker made the announcement on May 1.
“The company will not only buy North Carolina cotton, but will produce the combed yarn here as well," Decker said. "Innovative companies such as SGR Textiles are bringing new machinery that will be put to good use by our talented workforce in Rockingham County.”
Shri Govindaraja Textiles Private Limited (SGT) is a part of the Jayavilas Group of Aruppukottai, India. The group is the largest spinner in India with a total installed capacity of 1.1 million spindles. It employs 30,000 people.
"SGT has decided to set up a state-of-the-art yarn manufacturing facility in Eden after an extensive search and comparative study that we undertook among nine different states and various counties,” said Ramkumar Varadarajan, managing director of SGR Textiles. “The input cost advantage and the skilled workforce present in Eden will aid in our successful implementation and operation of the project."
Eden was once a hotbed of textile manufacturing but, like many areas in the South, was hard hit by job losses during the industry’s decline over the last two decades.
“It is great to see manufacturing coming back to North Carolina, and I am proud to see our rich textile heritage on the rise once again,” said N.C. Lieutenant Governor Dan Forest. “There are numerous reasons this company chose North Carolina, including our abundant agricultural and human resources, our existing manufacturing facilities, our low energy costs and our competitive tax structure.”
Salaries will vary by job function, but average annual payroll is estimated to be nearly $2 million plus benefits, according to the governor’s office.
"We’re committed to increasing the number of jobs through international cooperation,” McCrory said. “With a strong labor force and proximity to cotton-growing regions and ports, Shri Govindaraja Textiles will succeed in North Carolina."
The NC Department of Commerce’s Rural Infrastructure Authority Board awarded a $750,000 Community Development Block Grant (CDBG) to the City of Eden to assist SGRTEX with up to 50 percent of building upfit costs.