Gov. Asa Hutchinson on Thursday announced an agreement with a Chinese clothing manufacturer that will bring 400 new jobs and a $20 million investment to Arkansas.
In a news conference, Hutchinson spoke from Beijing, China, about the deal with Suzhou Tianyuan Garments Co., a manufacturer that specializes in making casual clothing and sportswear for Adidas, Reebok and Armani.
Hutchinson and Tianyuan executives signed a memorandum of understanding that unofficially committed the company to operating a facility in Little Rock. The agreement calls for hiring 400 full-time employees at an average wage of $14 an hour within four years of starting operations and investing $20 million in purchasing and improving the building and buying equipment.
Tianyuan hopes to be operational in Arkansas by the end of 2017, according to a news release.
This deal marks the first time a Chinese-owned garment manufacturing company chose to operate a facility in the U.S., Hutchinson said.
"We've lost manufacturing to China in previous decades. But now we see that same manufacturing wanting to return to the United States of America," the governor said.
"It'll be interesting to watch how the garment industry unfolds in coming years and how Arkansas participates in that," Hutchinson added.
Hutchinson acknowledged parts of Arkansas have undergone major losses in garment and shoe manufacturing jobs, and he said he knows some people may be skeptical about the possible reemergence of the industry.
During the visit to China, Arkansas officials have already spoken to other companies there about long-term trade opportunities, including loosening the Chinese ban on importing poultry from the U.S. and the possibility of China importing Arkansas rice, the governor said.
Read Friday's Arkansas Democrat-Gazette for full details.