Carpet giant Mohawk Industries plans to expand operations in northwest Georgia, riding improved demand for flooring, state and company officials announced Wednesday.

Calhoun-based Mohawk plans overhaul two factories in Dalton and Rome and create 420 new jobs. The company’s plans call for the retention of 230 existing jobs, according to a news release. The carpet maker has also committed to investing about $85 million in the projects.

Mohawk plans to convert the two plants to a different form of yarn-making technique known as bulk continuous filament.

“As the U.S. economic recovery gains traction, Mohawk is increasing manufacturing capacity to meet rising demand for the company’s premium soft carpets,” Joe Yarbrough, Mohawk senior vice president of advanced manufacturing engineering, said in a news release.

Carpet production and sales are closely tied to new construction, home sales, and renovations, and flooring is big business in Georgia. The industry took a beating during the recession.

The Wednesday announcement is the latest in a wave of jobs announcements in Georgia’s carpet country. In August, Shaw Industries announced a plan to build a new carpet tile plant that will employ 500 people, and in May, Engineered Floors said it would invest $450 million to build two new carpet plants that could employ 2,400.