The American Woolen Company is in the process of acquiring the assets of the Stafford Springs wool mill, which closed production late last year.

Through the acquisition, American Woolen said it will reintroduce luxury worsted and woollen textile manufacturing to the US.

The company will be supported by a $300,000 loan and a $100,000 grant by the Connecticut Department of Economic and Community Development to help cover building acquisition costs.

American Woolen said it will hire many of the mill's former employees as it ramps up production.

"This project wouldn't have happened without the cooperation and support from Governor Malloy and his economic development team," said Jacob Harrison Long, CEO of American Woolen Company.

American Woolen Company closed last Wednesday to transfer the equipment and property, owned by The Warren Corp, which ended production at the factory at the end of last year.