Unifi, Inc. has entered into a joint venture with Sinopec Yizheng Chemical Fibre Co., Ltd. to manufacture, process, and market polyester filament yarn through Yizheng's facilities in Jiangsu Province, PRC. The joint venture company, called Yihua Unifi Fibre Industry Company Limited, will focus on the production of higher margin specialty yarns for the China market.

Each company will own 50 percent equity interest in the joint venture. Unifi's investment in the joint venture is estimated to be $30 million, which will be funded by the proceeds from the sale of the plant, property, and equipment of the company's European manufacturing operations.