|By Marketwired .||
|January 17, 2014 09:35 AM EST||
WALTERBORO, SC -- (Marketwired) -- 01/17/14 -- SarlaFlex Inc. has secured $13 million in New Markets Tax Credit (NMTC) allocation from Los Angeles-based National New Markets Fund, LLC (NNMF) to redevelop a manufacturing facility in rural South Carolina into the company's first U.S. based yarn and thread plant. U.S. Bank serves as the tax credit investor, capitalizing the allocation.
Sarla Performance Fibers, based in Mumbai, India, began installing equipment and rehabilitating the facility in early 2013 under the name SarlaFlex Inc. The first phase of the new plant is expected to be fully operational in the first quarter of 2014.
The parent company has been in business for 25 years, with international operations in Honduras, Turkey, Portugal, Thailand and Vietnam. The SarlaFlex Inc. subsidiary will run the new manufacturing facility, which will make polyester thread and yarn products primarily for international apparel and upholstery customers.
The facility is located in a highly distressed rural area with a 25.4% poverty rate and 17.6% unemployment rate. SarlaFlex Inc. currently employs 72 people to initiate trial runs and setup production, and anticipates employing a total of 150 individuals by the end of 2014.
"The New Markets Tax Credit program has been a great help for Sarla to complete its U.S. project and step up its manufacturing and hiring plans," said Bobby Downs, president of SarlaFlex Inc. "With NMTC financing, we will have critical working capital to accelerate hiring, increase inventory purchases, and position the company to attract conventional capital which, due to the company's start-up status in the U.S., has been nearly impossible to arrange."
NMTCs were established by Congress in 2000 to stimulate investment and economic growth in designated low-income communities. They raise investor capital and leverage public and private funding to provide borrowers, like SarlaFlex, with financing in the form of favorable rates and flexible below-market terms. NMTC financing will allow SarlaFlex to continue focusing on its expansion and provide new employment opportunities in Colleton County.
"South Carolina lost roughly 38 percent of its overall manufacturing between 2000 and 2011, but has since been recovering those lost jobs and revenue by targeting manufacturing companies, including textile manufacturers," said NNMF President Deborah La Franchi. "Our NMTC investment in SarlaFlex will spur the creation of high-quality jobs, while transforming a severely distressed community."
NNMF CEO Belden Hull Daniels added, "We are pleased to contribute funding for the first phase of the SarlaFlex project, while helping continue the region's textile manufacturing tradition."
The project is part of South Carolina's larger redevelopment efforts to attract manufacturing businesses that can operate effectively in rural areas. SarlaFlex Inc. is formally collaborating with Colleton County on retraining and rehiring 70 employees who were laid off as a result of the local Walterboro Veneer plant closure in February 2013. The new facility also anchors a commercial park that is anticipated to attract other companies and help catalyze critical economic development.
"The SarlaFlex project aligns with South Carolina's goal of strengthening manufacturing in its rural communities," said Laura Vowell, vice president for U.S. Bancorp Community Development Corporation, the community development subsidiary of U.S. Bank. "We're proud to utilize NMTCs to address stakeholder's needs and support the state's ongoing economic development."
About National New Markets Fund
Deborah La Franchi of Strategic Development Solutions (SDS) and Belden Hull Daniels of Economic Innovation International, Inc. co-founded National New Markets Fund to invest in development projects that serve low income communities across the U.S. The Fund has received $312 million in New Markets Tax Credit (NMTC) allocation and invested in 25 projects to date. As a mission-driven investment fund, it seeks investments that create substantial economic and community development impacts. For more information on the Fund's projects, visit www.sdsgroup.com/funds/national-new-markets-fund/nnmf-projects.
About U.S. Bancorp
U.S. Bancorp (NYSE: USB), with $361 billion in assets as of Sept. 30, 2013, is the parent company of U.S. Bank, the 5th largest commercial bank in the United States. The company operates 3,088 banking offices in 25 states and 4,937 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp at www.usbank.com.
About Sarla Performance Fibers Limited (SPFL)
SPFL is a 100% EOU (export oriented unit enjoying duty-free imports of raw materials) engaged in the manufacturing and export of polyester and nylon textured, twisted and dyed yarns, covered yarns, high tenacity yarns and sewing thread. Beginning as a manufacturer of commodity yarns, the company has successfully shifted its focus and established itself as a manufacturer of specialized and higher value added yarns. Its strength lies in customizing the product as per each individual customer's requirements and specifications. Over the years SPFL has expanded its activities with the expansion and upgrade of existing facilities in India, as well as through new facilities overseas. With clients in all major countries across the globe and a presence in key international locations, SPFL has developed a strong customer base. The company's head office is located in Mumbai, India and its manufacturing facilities are situated 160 km outside Mumbai in Silvassa and Vapi. It has an installed capacity of 11,900 tons per annum for manufacturing yarns in Silvassa and 3,200 tons per annum for a dyeing unit at Vapi. For more information visit www.sarlafibers.com.
ExcelPR Group (for NNMF)
(323) 851-2300 x112
310.914.5333 ext. 213