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North American Report
North American Report
UPDATED: December 24, 2013
Chinese Textile Maker's First Step in U.S.
Keer Group selects South Carolina as new international headquarters
By Jonathan Poston
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After an extensive search, Chinese textile manufacturer Keer Group recently settled on South Carolina as the perfect location for its first international venture rather than the typical business hotspots in California or New York.

"South Carolina quickly rose to the top of our list," said Keer Chairman Zhu Shanqing in a press release published by the S.C. Dept. of Commerce. "We chose to locate our first U.S. facility in South Carolina for a number of reasons, which include the state's workforce, proximity to cotton producers and access to the port. We look forward to a successful partnership with the state and the local community as we get this facility up and running during the next year."

The South Carolina Department of Commerce announced that the local citizens of Indian Land, Lancaster County, are eagerly anticipating the construction of Keer's 21,368-square-meter plant, which will manufacture industrial cotton yarn and create more than 500 jobs, according to state estimates. Keer Group's investment is likely to exceed $200 million, with official ground breaking to occur February 2014.

"Keer had studied North Carolina and Louisiana in addition to South Carolina. It also evaluated whether to make an outright purchase of an existing U.S. yarn producer, or start with a greenfield operation. Over time, South Carolina has become the obvious choice," said Hank Huang, who led the search for Keer's site selection. "The team that [the state] has enlisted both in its China office and South Carolina has proved to be very helpful and competent in providing all the help we need to make this decision-making process much easier."

Cotton roots

South Carolina is well known for its cotton, dating back to colonial times.

The state's fields are full of the cotton plant, Gossypium sp., which produces characteristic prominent puffy white fiber balls. The fields are so white that they could be mistaken for fields of snow if it weren't for the high temperatures for which the state is also known.

Cotton has bestowed this state with a strong cultural identity around a commodity that clothes much of the world's population. There are numerous South Carolina songs, festivals, and tales spun with cotton playing the lead role.

Industrial future

Along with the state's reputation for growing cotton, it was important that state logistical capabilities could support a strong export operation. Yarn produced from Keer's new location will be exported from the Port of Charleston, which lies less than 321 km south of Indian Land.

"The South Carolina Ports Authority is pleased to fulfill the Keer Group's export needs through the Port of Charleston's eight direct service routes to China," said Jim Newsome, CEO of the South Carolina Ports Authority, via a South Carolina Department of Commerce press release.

While some research has indicated that traditional cotton production can be detrimental to the environment due to chemicals used in the farming process, China has been more proactive as a leader in environmental protection, and Keer Group has committed to responsible farming practices from its South Carolina suppliers.

"As we will source our future cotton supply in the U.S., we believe that U.S. cotton growers are very mindful in protecting the environment we live in and trust that they will do their best to safeguard that. As a responsible corporate citizen, we certainly would encourage our vendors to practice that," said Huang.

For those wondering how China stands to profit from manufacturing in the U.S., John Ling, Managing Director of the State of South Carolina-Asia Office, said: "U.S. cotton is about one-third cheaper than China. It also consumes a lot of electricity during the process, and utility cost [in the U.S.] is about half of what the cost is in China. Land is plentiful and cost is much lower in South Carolina."

"This is a win-win situation for both China and the U.S. The Chinese Government actually encourages Chinese companies to go abroad and invest in overseas countries, including the U.S.," Ling added.

The author is Beijing Review's contributing writer



 
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