The US$20m deal will create around 400 jobs in Little Rock, Arkansas

The US$20m deal will create around 400 jobs in Little Rock, Arkansas

A Chinese garment manufacturer that produces for brands including Adidas and Reebok is to set up of a new US$20m factory in North America. 

Suzhou Tianyuan Garments Co will create around 400 jobs at the facility in Little Rock, Arkansas, according to the State's Governor Asa Hutchinson, which is expected to be operational by the end of 2017.

Suzhou Tianyuan specialises in the production of casual and sportswear for customers that also include Armani. The company's annual production is around 10m pieces of clothing, with 90% of its garments currently supplied under the Adidas brand.

"I am thrilled to announce that Tianyuan has chosen Arkansas as their North American home. Arkansas' strategic location will give them great access to the US market and beyond," said Governor Hutchinson.

It is understood the Arkansas Economic Development Commission (AEDC) offered an incentive package that will include a five-year, 3.9% annual tax rebate worth nearly $1.6m million. Other incentives include a $1m infrastructure assistance grant for building improvements and equipment purchases, as well as a $500,000 stipend for worker training. 

A report last month suggested textile and apparel manufacturing in the US is enjoying a resurgence with companies based in India and China investing in US facilities.

Such reshoring may have been triggered partly by concerns over factory safety and by growing fears over the safety of chemicals and a lack of traceability, which are easier to monitor and control in US factories than they are in far-off developing countries.

US textile and apparel manufacturing enjoys resurgence

And earlier this month Chinese company Shangying Global entered the US marketplace with its first international acquisition, purchasing global apparel manufacturer, designer, and merchandiser Oneworld Star International (OSI) in a deal worth US$280m. 

Shangying Global buys Oneworld Star in $280m deal