Unifi, Inc. has closed on the sale and received $9 million in proceeds related to its 50% ownership interest in Yihua Unifi Fibre Industry Co., Ltd., the company's joint venture with Sinopec Yizheng Chemical Fiber Co., Ltd. (YCFC). Unifi will continue to service customers in Asia through Unifi Textiles Suzhou Co., Ltd. (UTSC), a wholly-owned subsidiary based in Suzhou, China, that is dedicated to the development, sales and service of premium value-added (PVA) yarns.
“Succeeding in today's global economic climate requires an even greater focus on supply chain management and the development of innovative specialty yarns, and UTSC provides Unifi with the flexibility and speed-to-market required to respond to the needs of our customers in Asia,” said Roger Berrier, executive vice president of Unifi. “And now with the sale of our joint venture, UTSC will continue to expand the sales and promotion of the company's specialty and PVA products, while aggressively focusing on global product commercialization of new and existing products.”
Unifi is actively developing new and enhanced technologies for the global textile markets with expectations of commercializing these in China through its new subsidiary, UTSC. Unifi is introducing the next generation SORBTEK technology that will provide the same superior moisture management performance at a more competitive local price. Additionally, Unifi continues to develop sustainable textiles under the REPREVE brand, including the expansion of REPREVE polyester staple fiber for use in spun yarns and will begin to localize more recycling efforts in China.
“We are very excited about these opportunities and appreciate all of the support and confidence our global customer base has given us during this transition,” said Berrier. “We remain committed to providing exceptional product quality and service, and we are confident our customers will benefit from the strength of the relationships that Unifi has developed with many of the world's leading brands and retailers.”