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 host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...