Unifi To Utilize Tuntex Facility As Asian Sourcing Base

Unifi Inc., Greensboro, N.C., and Tuntex Public Co. Ltd., Thailand, have reached agreements regarding the manufacture and sale of polyester filament yarns produced at the Tuntex manufacturing facility in Thailand.

Unifi will use Tuntex’s Thailand plant as a base for sourcing of yarns in Asia. In turn, Unifi will assist Tuntex in refining its textured yarn production processes and in expanding its variety of textured yarns in an effort to increase global sales for both companies. The companies will maintain separate sales and distribution organizations.

"These agreements will provide Unifi with a competitive entry point into the largest textile region in the world. Asia represents the majority of the global polyester textured yarn consumption. The agreements with Tuntex will establish an effective foothold into the market from which we can distribute high quality textured polyester yarns, particularly to supply the needs of western companies that have already shifted production to the region," said Mike Delaney, senior vice president, Unifi.

Tuntex General Manager and Director of the Board J.T. Yang echoed Delaney’s sentiments. "We look forward to the enhanced relationship with Unifi. Through these agreements, we have acquired a world-class partner for our polyester manufacturing business that will enable us to further capitalize on our investments in Thailand," Yang said. "We are particularly excited about the expanded opportunities in the Asian industrial polyester markets, such as automotive and upholstery, which are envisaged to grow at a significant rate."

August 2002