Alok to establish U.S. spinning mill
May 10, 2013,
Dallas - More than a decade after the last major home textiles mill closed in the United States there are plans to open what would be the first new yarn spinning plant in this country in more than 20 years.
And it's an Indian company - Alok Industries - that is planning to do so.
The company declined to be more specific on exact location or timing, but added that it was working with an unidentified American retailer on the project.
As labor costs in Asia have increased and lead times have become more of an issue for quick-to-market strategies, companies are increasingly looking at North American manufacturing options. Earlier this year, Ellison First Asia said it was working on an entirely American made bedding program. And there are still several spinning plants making yarn in the U.S.
But this Alok initiative would still involve foreign production, according to Arun Agarwal, president of Alok International, the U.S. subsidiary based here. He said the new facility would be a spinning plant only, making yarn which would then be sent to Latin America for weaving and finishing.
Agarwal said it was a financial decision for Alok, which has large yarn spinning facilities in India. "Energy is driving this," he said, citing U.S. energy costs that are a fourth of what they are in India.
He also said that the availability of American cotton made the business model workable. While India is the second largest cotton grower after China, the U.S. is third and is generally considered to produce a better grade of cotton.