The Biden administration has announced that Parkdale Mills, which provides spun yarns and cotton consumer products, will use a US$150m investment to build a new yarn spinning facility in Honduras as well as support an existing facility in Virginia.
The investment from the yarn company is one of many that has been announced as part of the Biden administration’s call to action to the private sector to promote economic opportunity in the Central America region.
Parkdale Mills hopes the investment will provide customers with sources for purchasing one million pounds of yarn per week within the region and will increase US supply chain resilience.
The investment is expected to support 500 employees at each location and increase indirect job growth in Honduras and in the US, particularly in the US cotton industry across 18 states. The investment also includes $24m in new investments in solar energy, water recapture, and energy efficient HVAC systems.
Anderson Warlick, chairman and CEO of Parkdale Mills said: “Parkdale’s investments will support good paying jobs in the United States and in the Central American region and significantly increase our extensive product offering and capacity, including the production of sustainable specialty yarns.”
He added: “Parkdale sees an enormous opportunity for brands and retailers to re-shore and nearshore production supply chains and double the size of U.S.-CAFTA-DR trade, because of the rules of origin in our trade agreement and a shift in sourcing by brands and retailers mitigating their supply chain sourcing risks. We are excited about what this opportunity means for jobs in the US and the region for this critical production chain and couldn’t be more thrilled to be part of this effort. We look forward to working with the Vice President and her team on strengthening the textile and apparel production chains in the US and region.”
Parkdale Mills is a member of the National Council of Textile Organizations (NCTO) and president and CEO Kim Glas is excited about the announcement.
She said: “Our industry has invested billions of dollars in the US and in the region as a result of the investment-based rules of origin in the CAFTA-DR agreement, which ensures the job benefits of the agreement are reserved for the parties to the agreement. Additional substantial announcements on further investment in textile and apparel production are expected soon.”
Glas pointed out the announcement is a win-win for American and Central American workers as well as the environment and provides a huge opportunity to further recalibrate supply chains out of China and Asia.
She explained: “This valuable co-production chain between the US and the CAFTA-DR region accounts for $12bn in two-way trade and billions of dollars of investment. Significant growth is occurring in our sector and is expected to continue as supply chains continue to recalibrate. We are delighted about this today’s announcement [13 December 2021] and appreciate the administration’s strong support.”
CARE International, Cargill, Grupo Mariposa, PepsiCo, JDE Peet’s, and PriceSmart have also made commitments to support economic development in northern Central America, as part of the conference convened by the State Department, the US Chamber of Commerce, and the Partnership for Central America to support investment in the region on 13 December 2021.