Jerash Holdings, NTX sign agreement to form JV for vertical integration

Jerash Holdings has entered into a definitive agreement to form a joint venture with Newtech Textile. The joint venture company, to be named Jerash Newtech, plans to build a new state-of-the-art fabric facility in Jordan to produce fabrics in a sustainable and innovative manner by utilizing the NTX Cooltrans proprietary waterless coloration technology. The technology is expected to allow for a more than 90 percent water reduction, 65 percent energy savings, 40 percent chemical reduction and over 50 percent carbon footprint reduction in the dyeing process in comparison with traditional coloration approach. The joint venture is anticipated to foster local employment in high-tech-related jobs. Jerash is working with the Jordanian government on possible support and collaboration for the project. Estimated capital expenditures for the joint venture to build the facility will be approximately $30 million, which includes a knitting plant, a dyeing and printing house, laboratory facilities, offices, workers’ housing, and related set-up costs over the next several years. Construction is expected to begin in the first half of 2024. Jerash will hold a 51 percent interest, while NTX will hold a 49 percent interest in the joint venture. Jerash and NTX will contribute proportionate amounts of capital to the joint venture.