Industryweek 2038 20814 Zagis Usa Plant

U.S. Textile Manufacturing Lives

Jan. 12, 2010
Zagis USA opened cotton yarn mill in Lacassine, La.

Just when you thought textile manufacturing in the United States was dead, a new cotton yarn mill has begun production in Louisiana. The $20 million facility in Lacassine, La., is the first of two mills that Zagis USA plans to build in the state.

The mill, which opened in December, is capable of processing 50 million pounds of cotton annually, according to the company. Founded in 2007, Zagis USA is a partnership between North Carolina textile executives and Mexican conglomerate Grupo Zaga.

The 128,000-square-foot facility marks the first significant cotton processing investment in Louisiana in decades, according to Louisiana Economic Development (LED). "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 in a statement. "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."

Zagis USA opened this new cotton yarn mill in Lacassine, La., in December. It's one of the first major cotton processing investments in decades for Louisiana, according to the state's economic development department.

Once the second plant is built, the two mills together will employ at least 160 workers and create approximately 645 additional indirect jobs by 2012, LED estimates. The total capital investment for both plants is expected to be about $75 million.

The new mills are good news for Louisiana's cotton industry, which has fallen on tough times in recent years. Total cotton production in the state fell by nearly 75% between 2005 and 2008 due to lower yields caused by Hurricane Gustav in 2008 and an overall downward trend in cotton acres planted, according to a report published by Louisiana State University's Agricultural Center. The new facility will have one of the lowest yarn production costs in the world, partly due to its access to Louisiana's cotton supply, according to the company.

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