Construction of the first of two major textile mills producing
cotton yarn planned for southwest Louisiana was completed in 2008,
with the second scheduled for completion in 2009.
The two mills represent a $75 million investment by Zagis USA, a
newly formed corporation between North Carolina textile executives
and Grupo Zaga (one of Mexico's most successful
industrial/commercial conglomerates). Moreover, this is the first
significant cotton processing investment in Louisiana in
decades.
"Zagis chose Louisiana because of its location relative to raw
material, its infrastructure - interstate, rail, ports - and the
strong entrepreneurial support from Louisiana's departments of
economic development and agriculture," said Dan Feibus, chief
operating officer of Zagis USA.
The location in southwest Louisiana assures Zagis USA one of the
lowest yarn production costs in the nation and the world due to
access to raw material, proximity to ports and strategic freight
lanes, low interest rates, state incentives and reliable power at a
stable, competitive cost.
Louisiana Economic Development officials worked with Zagis USA
for two years to bring the company to Louisiana. LED Secretary
Stephen Moret said Zagis' arrival profoundly changes the nature of
the state's cotton industry.
"This represents a significant shift for the cotton industry,
particularly here in Louisiana," said Moret. "Historically, most of
Louisiana's cotton has been shipped out of state in raw,
unprocessed form, headed for export markets. Once (the full
project) is complete, the Zagis mills could utilize up to 15 to 20
percent of Louisiana's cotton crop to spin cotton yarn right here
at home. We are very pleased to welcome Zagis to Louisiana."
