Hanesbrands to cease opts at Stratford Road textile manufacturing plant
30 Mar '07
3 min read
Moving the Stratford Road textile production to the company's existing manufacturing facilities in the lower-cost Caribbean basin and Central America regions is part of the company's continuing long-term global supply chain strategy.
"Over the past several years, we have developed our textile manufacturing capability in the Caribbean and Central America in order to improve the competitiveness, effectiveness and value of our supply chain operations," Evans said.
"We now have enough production capacity to absorb our Stratford Road production into these newer, lower-cost textile operations, which also helps us align the flow of textiles into our sewing network."
"This move is an economic necessity in today's competitive global market and gives us the opportunity to generate growth that allows our overall organization to thrive."
Hanesbrands expects to take gross restructuring and related charges of approximately $16 million for the plant closure, including severance costs and accelerated depreciation of fixed assets.
The majority of the charge will be noncash. The restructuring and related charges are expected to be partially reduced by the eventual sale of the plant property. Hanesbrands plans to sell the 27-acre plant property, 700 S. Stratford Road, after production ceases and equipment is removed.
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