Culp Inc & Synthetics Finishing enter in strategic tie-up
04 Oct '05
2 min read
North Carolina based textile fabrics producer Culp Inc announced a plan to strategically align with Synthetics Finishing, a division of TSG Incorporated, to provide finishing services to Culp for its domestically produced decorative upholstery fabrics.
Synthetics Finishing has over 100 years experience as a leading U.S. commission finisher and, in addition to finishing services, will collaborate with Culp on research and product development activities. As a result, Culp will close its finishing plant in Burlington, North Carolina, thereby reducing the number of Culp associates by approximately 100 people. This transition is expected to be completed in January 2006.
The company expects total pre-tax charges of approximately $2.7 million, of which $2.1 million is expected to be non-cash items. The charges expected to be recorded in the second and third quarters of fiscal 2006.
Commenting on the announcement, Robert G. Culp, III, Chairman and Chief Executive Officer of Culp Inc, said, "As the global marketplace continues to evolve, they are transitioning Culp's business model to one that is more agile and less capital intensive. They believe that establishing a cooperative manufacturing alliance with an experienced supplier such as Synthetics Finishing will allow us to maintain the same high standards of quality control and service for customers on a more cost-effective basis. In addition, they are excited about the increased opportunities for development of innovative applications to enhance fabric performance.
marketing@alchempro.com
