Russell Corporation to move more production offshore

20/01/2006

Russell Corporation has announced a major restructuring designed to improve the company's long-term competitiveness.

The plans focus on three areas within the company and include a continued shift offshore of textile/apparel manufacturing operations; expansion of its newest textile facility in Honduras; the elimination of all knit textile capacity in Alexander City, Alabama; the completion of the movement of sock production offshore;

The movement of additional team uniform production offshore; the closure of a sewing operation in Mexico; the completion of operational changes to Huffy Sports' backboard business; the elimination of remaining Huffy Sports domestic production; the movement of production offshore to a current supplier; reductions of $8 million to $10 million in overhead costs; the reorganisation of sales and marketing within the Russell Athletic Group; the elimination of approximately 90 positions in corporate and division offices.

The plans will impact approximately 2,300 positions globally, including 1,700 in the US, of which approximately 1,200 will eventually be replaced in Honduras and Mexico.