Unifi to move few machines for Nylon business development
30 Aug '05
3 min read
Largest multi-filament polyester and nylon textured yarns and related raw materials producer Unifi Inc announced that it is taking a number of actions to improve the efficiency of its Nylon business unit, located in Rockingham County, North Carolina.
The Company will close Plant one in Mayodan, North Carolina and move its operations and offices to Plant three in nearby Madison, North Carolina, which is the Nylon division's largest facility with over one million square feet of production space. The Company expects that fewer than thirty current positions will be eliminated due to this move and that the majority of employees will be transferred from Plant one to Plant three. This move allows Unifi to centralize production between these two sites and increase the overall efficiency of the Nylon business unit operations. The move is expected to begin in September, with the majority of the process being completed by December 2005. The remainder of the process will be completed by March 2006.
In addition, the Company will move a small number of machines into Plant three to improve its capabilities. Moving costs associated with this relocation are estimated to be approximately six-hundred thousand dollars. The Company will spend approximately an additional two-hundred thousand dollars in capital expenditures to effectuate this change.
"While Unifi has made progress toward returning the Company to profitability over the past year, their work is still far from being finished, and they have not yet obtained their goal," said Bill Lowe, Chief Operating Officer and CFO for Unifi. "Despite past efforts, the Nylon business unit has continued to report disappointing results over the past couple of years and operate in more facilities than the current business environment requires. They are also reviewing their product mix similar to efforts last year in the polyester division and are considering other actions to improve the Nylon business. Unifi is committed to improving the health of the Nylon business and is taking these steps to improve its operations and increase its profitability."
marketing@alchempro.com
