Unifi board gives green light to venture
May 12, 2005-- Home Textiles Today,
GREENSBORO, N.C. — Unifi and Sinopec Yizheng Chemical Fiber Co., Ltd. have been granted permission by their respective boards of directors to sign agreements regarding a joint venture between the two companies.
Unifi indicated in its last earnings conference call that the signing would occur in mid-May but has been informed by YCFC that, due to issues not related to the proposed venture, the signing will take place sometime in June. Based on this new timeline, Unifi stated it expects the establishment of the venture will take sometime in the company’s first quarter of fiscal 2006.
The venture is being formed to manufacture, process and market polyester filament yarn through YCFC’s five plant facilities in Yizheng, Jiangsu Province, China. The joint venture will be owned 50 percent by each company. Unifi's investment in the proposed joint venture is estimated to be $30 million. The venture will focus on the production of higher margin specialty yarns for use within China and Asia.