Unifi Partners With Yizheng
Unifi Asia Holdings, a subsidiary of Greensboro, N.C.-based Unifi Inc., and Sinopec Yizheng Chemical Fiber Co. Ltd., China, have formed Yihua Unifi Fibre Industry Co. Ltd. — a 50/50 joint venture to manufacture, process and market higher-margin specialty polyester filament yarn in Yizheng’s Plant 5 in Jiangsu Province, China, for the Chinese market. Unifi will invest an estimated $30 million — to be funded by proceeds from the sale of assets from its European operations — in the joint venture. “Unifi’s portfolio of branded specialty yarns, together with our global manufacturing, marketing and sales expertise, will create new growth opportunities in the domestic Chinese market,”said Brian Parke, chairman and CEO, Unifi.“The ability to produce these specialty yarns in Yizheng’s plant 5, one of the most modernized facilities in China today, will provide us with significant competitive advantages. The excellent fit between our two companies will make this joint venture a model for success in the complex and ever-changing global marketplace.”
November/December 2005