UFI
#Yes.
We just announced last month that we need to start installing some additional capacity.
We are about 50% of the way through that as we speak, and we should be completed by June ---+ in a couple of months.
So that is just incremental capacity, as we mentioned, adding capacity for the growth in CAFTA and also that lighter denier mix that we mentioned.
Yes.
I mean, with the growth that we referenced, those machines are running.
Typically, you see our third and fourth quarters being a little more strong from a volume standpoint.
So we are certainly in the season now where those machines, as they come online, they are running.
Yes.
I think, as <UNK> referenced, and certainly we have talked a lot about our ---+ one of our core goals is to continue to produce mix enrichment strategies and products.
And, as <UNK> mentioned, we are on the higher end of our growth for PVA product.
And so this is both taking commodity products and moving those into a richer mix product, but also working with new programs that were not introduced as virgin in the beginning, but as those new programs come online, they come online with the REPREVE or a PVA product in the beginning.
You are correct.
Parkdale is ---+ America is in the middle of an internal expansion down in Rabun Gap, Georgia, as we have talked about in the past.
And it is included within our financials and their 10-K-A.
There is acquisition and capital spending for an entity in Mexico.
There has also been the conversation about Parkdale America replicating what was done with Hanesbrands years ago, now being done with Fruit of the Loom.
So those are the three largest projects for Parkdale America.
The first is certainly nearing its completion.
The second is probably about half way through this acquisition.
This happened during the calendar month of March.
So I think as we begin to get into speaking from a calendar year perspective, calendar year 2016, Parkdale America will begin to see the benefits of that capital spending and those projects.
And those are three examples of their current capital spending that we are very excited about that will begin to increase our share of their pretax income, we believe, above the current run rate beginning in calendar year 2016 and beyond.
And, <UNK>, as far as making any projections to what the results may be, I think that is kind of difficult right now because the cotton spinning business in this country is kind of in flux.
I think the Parkdale management are really, really good at what they do.
These projects certainly are going to be beneficial, I think.
On the other side, you have got Gildan backward integrating into cotton spinning.
You have got other cotton spinners announcing capacity coming into the region.
So I think it is difficult to project how much benefit we're going to see from these projects.
But I think it is safe to say Parkdale is making the right moves, at least in our opinion.
The $28 million project will ---+ it will generate $75 million pounds of clear polyester bottle flake.
When we talk about our capacity in the recycling center, we are talking about our current capacity is 70 million, growing to 100 million with this next expansion that we talked about earlier.
So this is really feeding our operation.
So when you look at the growth of REPREVE, when we were in our very earlier stages, we were a merchant buyer of a lot of this material.
We did not have the scale to really backward integrate at that time.
So we were paying market prices.
And within those market prices, there is margins that other suppliers were making from us.
We can't really get the quality and some of the efficiencies on a continuous basis that we need to operate effectively and cost-effectively.
And so, as we have grown REPREVE, certainly at some point, it was going to make sense for us to seriously consider backward integration.
I think now that we have got the scale of REPREVE, the time is right for us to take that backward integration.
The technology that has been developed around recycling has really progressed over the last two to three years.
So, as we are investing today, we're going to be investing in the latest technology that we think will create a step change in the world of recycling that will offer some advantages to us now versus the supply chain that we are currently buying from.
I would look at it in terms of the volume requirements that we have today.
We will become more self-sufficient as we backward in.
Well, I think we are comfortable at the 75 million because we have talked about other PVA programs where we recycle other forms of waste, being textile waste, yarn waste.
We have talked about takeback programs where we bring back in fabrics and other scraps.
So if you look at the 100 million of capacity, a large percentage of that is bottles, but the other percentage of that is waste fabric.
So when you add those two components together, you can see that we can feed 100 million pounds with the bottle processing facility and the other forms of waste that wepurchase.
Thanks, operator.
This is <UNK> and appreciate everybody's interest in the Company.
We are very optimistic about the future going forward and look forward to our next call.
Thank you.
