China's Top Textile Company Finds "High Cotton" Solutions in Arkansas
SituationIn 2015, Chinese textile manufacturer, Shandong Ruyi, wanted to expand operations North America to find cheaper energy costs, better overall quality, a multilingual workforce and access to raw cotton. In the search for a new location, the company needed to find a state that could both meet their manufacturing needs and be a partner that could respond to their queries in a timely fashion.
The Problem/ChallengeIn the search for a new location, the company needed to find a state that could both meet their manufacturing needs and be a partner that could respond to their queries in a timely fashion.
SolutionThe AEDC was responsive to the needs of Shandong Ruyi, indicating a culture of understanding and commitment which fostered a working relationship. Part of that response included competitive incentives for bringing business to Arkansas. Ruyi Group is able to take advantage of these incentives, including up to $4 million in grants and participation in the Create Rebate and Tax Back programs. With the Create Rebate program, the company will receive an annual cash rebate equal to 5 percent of total payroll (associated with the new jobs created) for 10 years. The Tax Back program provides sales tax refunds on building materials, machinery and equipment.
ResultsIn 2017, the Shandong Ruyi Technology Group announced plans to invest $410 million in the former Sanyo manufacturing facility in Forrest City, Arkansas. The new facility will create up to 800 jobs. Production at the new facility is set to begin by mid-2018.
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Company: Shandong Ruyi Technology Group
Fast Fact: Shandong Ruyi Technology Group is the largest textile manufacturer in China, and the world’s leading innovative-technology textile enterprise.