Gastonia-based Parkdale Mills has acquired sole ownership of a textile plant in Mexico, officials have announced.
Summit Yarns is south of Mexico City in the state of Morales. Since 1997, Parkdale has owned half of the operation through a joint venture with International Textile Group.
Summit has been the primary supplier of the International Textile Group’s Cone Denim Yecapixtla plant and will continue to supply it under a long-term agreement.
“Our relationship with ITG has always been a strong one and our partnership is further strengthened as a result of the new agreement,” said Dan Nation, president of Parkdale International.
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Also, he said, the agreement will “strengthen jobs in the U.S. and Mexico.”
Financial terms of the agreement weren’t disclosed this week.
Chartered in 1916 by a group of investors in Gastonia, Parkdale began operating in 1918 with one plant. Fifty years after the charter, the company opened its second plant in Gastonia and by 1992 was operating 18 yarn spinning plants in the U.S.
Today, Parkdale has more than 4,200 employees in the U.S and employs 400 in Gaston County and Kings Mountain.
One of the largest providers of spun yarns in the world, Parkdale has 29 manufacturing plants in the U.S., Central America, Mexico and South America.
Expansion of the Summit plant in Mexico, which employs 350, has already begun. The plan is to more than double the manufacturing capacity of the facility in two phases.
Phase one will include new open-end spinning and support equipment. After this phase is completed, work will start immediately on a state-of-the-art ring spinning facility, which will allow the company to produce 100 percent cotton, poly cotton and heather yarns.
Nation said the workforce at the plant in Mexico is well-trained and dedicated. “It’s a testament to them that we invested there,” he said.