Indian conglomerate Reliance Industries Ltd. has made its first major U.S. investment by leasing a polyester yarn plant on property owned by DuPont Co. in North Carolina. Mumbai, India-based Reliance plans to add PET resin production to the site.
Reliance will spend $215 million to develop the Kinston, N.C., site and create 204 jobs, according to a June 20 news release from North Carolina Gov. Mike Easley. The firm's Reliance Industries USA unit will lease part of the facility to make PET resin and specialty polyester yarns.
Greensboro, N.C.-based Unifi Inc. had employed 260 making partially oriented yarn at the site. It has been vacant since late 2007.
Reliance ranks as the world's largest synthetic yarn maker.
Reliance USA operations President Thakur Sharma said the site was chosen for reasons that include the area's history in the polyester industry and proximity to customers. State and local incentives ``will help offset the high cost of establishing a major manufacturing facility,'' he said.
North Carolina is providing Reliance with a job development investment grant that could save it more than $2 million over a multiyear period, based on job creation and income tax from new jobs.
PET made in Kinston will be sold commercially in the U.S., Sharma said June 20 by phone. He did not provide more details.