Suzhou Tianyuan Garments company, a Chinese manufacturer of casual and sportswear, will be setting up a $20 million garment manufacturing factory in Arkansas, US. A memorandum of understanding (MoU) has already been signed between the company and Arkansas. The unit will create 400 jobs and is expected to be operational by the end of 2017.

Suzhou Tianyuan has five facilities in China to manufacture garments for brands like Adidas, Reebok, and Armani. The company annually produces approximately 10 million articles of clothing and currently supplies 90 per cent of garments to the Adidas brand.

“I am thrilled to announce that Tianyuan has chosen Arkansas as their North American home. Arkansas' strategic location will give them great access to the US market and beyond,” said Asa Hutchinson, governor, Arkansas.

“This deal with Tianyuan shows the continued momentum we have with companies looking to invest in Arkansas,” said Mike Preston, executive director of the Arkansas Economic Development Commission (AEDC).

Additional details regarding the establishment of the factory will soon be finalised by the company and AEDC, said an official statement by the Arkansas government.