Welcome!

News Feed Item

SarlaFlex Inc. Closes $13 Million in NMTC Financing for New U.S. Facility

Tax Credit Investment by National New Markets Fund Will Help Expand Yarn and Thread Production and Create 150 Permanent Jobs

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.

Contact:
Erik Deutsch
ExcelPR Group (for NNMF)
(323) 851-2300 x112
erikd[at]excelpr[dot]com

Jenny Mueller
NNMF
310.914.5333 ext. 213
jm[at]sdsgroup[dot]com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're focused on how to get some of the attributes that you would expect from an Amazon, Azure, Google, and doing that on-prem. We believe today that you can actually get those types of things done with certain architectures available in the market today," explained Steve Conner, VP of Sales at Cloudistics, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"The reason Tier 1 companies are coming to us is we're able to narrow the gap where custom applications need to be built. They provide a lot of services, like IBM has Watson, and they provide a lot of hardware but how do you bring it all together? Bringing it all together they have to build custom applications and that's the niche that we are able to help them with," explained Peter Jung, Product Leader at Pulzze Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2,...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...