The state announced today that a Chinese company planned to invest $410 million in the former Sanyo TV plant in Forrest City to spin Arkansas cotton into yarn for textile use.
Shandong Ruyi Technology Group said it could employ up to 800 at its first facility in North America. It’s described as the largest textile manufacturer in China. The plan was announced by Gov. Asa Hutchinson at a Capitol news conference.
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Sanyo closed in Forrest City in 2007 after a 30-year run. Renovations to the building are scheduled to begin late this year. Pay will be about $15 an hour.
I’ve asked for incentives provided for the plant’s location here.
Ruyi has bought French and British apparel manufacturers in recent years, completing a deal for Aquascutum in March.
Ruyi’s renovations on the former Sanyo building are scheduled to begin in late 2017.
Hutchinson touted Arkansas as a leader in Chinese investment, noting a pulp mill planned near Arkadelphia (which will rely on abundant timber), a garment factory in Little Rock and a dog food plant in Danville.
The incentive report, from the Economic Development Commission:
* Up to $4 million in grants from AEDC (this is dependent upon job creation)
* Create Rebate – the company will receive an annual cash rebate that is equal to 5% of total payroll (associated with the new jobs created) for ten years.
* Tax Back – provides sales tax refunds on building materials, taxable machinery and equipment associated with the project.