RIL to invest $215 million in US polyester plant

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New York, Jun 21 : Reliance Industries USA, part of Mukesh Ambani-led Indian conglomerate, will invest $215 million (about Rs 900 crore) and create over 200 new jobs at a newly acquired polyester plant in the US.

According to a regulatory filing here, Reliance Industries USA has acquired a polyester manufacturing facility in North Carolina for about $12.2 million from Unifi Kinston, where it plans to invest $215 million .

The investment would also generate over 200 jobs at the plant in the next five years. Unifi Kinston LLC said in the filing it has entered into an asset purchase agreement with Reliance Industries USA, which provides for the sale of all remaining assets and structures, located at the Unifi Kinston's polyester manufacturing facility for $12.2 million .

In a separate statement, North Carolina Governor Michael F Easley said that Reliance Industries USA would open its first North American manufacturing facility near Kinston. “The company will create 204 jobs during the next five years and invest $215 million in a plant to manufacture a resin used in the production of plastic containers and specialty polyester yarns,” the statement added. From the sale proceeds, Unifi Kinston would pay $3.6 million to EI DuPont de Nemours as part of demolition and removal obligations created by the asset sale.

US-listed Dupont had a manufacturing alliance with Unifi. Unifi Kinston expects to record a gain of about $6.9 million upon completion of the sale.According to the nine-year agreement with North Carolina department of commerce, Reliance Industries USA could get about $2.22 million in maximum benefits if could generate jobs called for under the pact.

“Should the company create the jobs called for under the agreement and sustain them for nine years, the agreement could yield as much as $2.22 million in maximum benefits for Reliance Industries USA,” the statement noted.

Further, Unifi Kinston, a wholly-owned subsidiary of Unifi Inc, said that it anticipates the acquisition to close by the first half of its fiscal 2009. “ However the closing is subject to customary due diligence and closing procedures and ....registrant (Unifi Kinston) makes no assurance that the sale will close during this time period or at all,” the filing added.

Reliance Industries USA plans to lease part of the Lenoir County DuPont facility formerly operated by Unifi and plans to manufacture polyethylene terephthalate resin and specialty polyester yarns.