Another hosiery maker shutters, CAFTA claims refuted
27 Jan '06
3 min read
Hosiery makers are shifting plants out of the US putting no blame on Central America Free Trade Agreement (CAFTA).
Thursday dawned with another closure of DeSoto Mills based in Fort Payne owned by Russell Corporation.
About 220 jobs will go according to planned restructuring that leads to overseas shift of manufacturing, during this year. Sources add that there were 5,533 jobs in hosiery mills in and around Fort Payne during 2005 but by September last year, the figure stands at 4,200.
However, US Rep Robert Aderholt and company officials categorically denied blaming the Central America Free Trade Agreement for hosiery industries to move operations out of the country.
Rep Robert Aderholt termed it simply "premature," and also also said that any local company relocating its operations abroad will regret doing so.
However, the official press release issued by Russell Chairman and CEO Jack Ward states: “We are fortunate that [CAFTA] did pass since it allows us to move to lower cost areas and not have to give up businesses and customers where we are currently losing money.”
Nancy Young, company spokesperson said Friday, that Ward's statements were misconstrued. It is “completely erroneous” to state jobs were lost because of CAFTA, she argued.
She reasoned that her company was currently offshoring 80 percent of their sock knitting requirement and the decision was good businesswise, to move out irrespective of whether CAFTA happens or no.
marketing@alchempro.com
