Unifi plans to close Dillon operations

27/04/2007

US producer and processor of multi-filament polyester and nylon textured yarns Unifi, Inc. has announced that that it will close its recently acquired Dillon, South Carolina facility. The company, which currently operates 42 texturing machines at the facility, expects operations to have ceased by July 31, when it will move its entire production to its plant in Yadkinville, North Carolina. The South Carolina facility currently employs approximately 355 staff.

Commenting on the closure, Bill Lowe, chief operating officer and chief financial officer, said, "The closure of the Dillon, South Carolina facility is consistent with our strategy of making key acquisitions and addressing excess capacity to lower our manufacturing costs. Our largest facility in Yadkinville of over 800,000 square feet has both the footprint and equipment to accommodate the volume currently run in South Carolina.”

The company estimates that it will add approximately 120 employees to its Yadkinville, North Carolina facility to accommodate the additional volume.

Meanwhile, Unifi posted a net loss of $13.2 million for its third quarter ended March 25, compared with a net loss of $2.1 million in the prior March quarter. Net sales fell $3.2 million to $178.2 million from $181.4 million.

Unifi’s brands include aio - all-in-one performance yarns, Sorbtek, A.M.Y., Mynx UV, Repreve, Reflexx, MicroVista and Satura.