Tietex increasing domestic capacity
By Susan M. Andrews -- Furniture Today, June 27, 2005
High Point — Bucking the trend toward Asian sourcing, fabric supplier Tietex Interiors is increasing domestic capacity with the purchase of a 300,000-square-foot plant in Matkins, N.C., from International Textile Group.
The purchase includes textile equipment and 40 acres of land. Terms weren't disclosed.
The plant has about 100 employees and will remain in production, Tietex said.
"While other companies are scaling back in favor of offshore sourcing, we're taking this step because ... we're bullish on the role Tietex will continue to play for customers who are not commodity-driven, as well as for those who care about design, fashion, speed to market and the true benefits of lean manufacturing," said President Mike Durham.
The move also signals a broad corporate strategy, said Reed Cunningham, president and chief operating officer of parent Tietex International.
"Our clear intention ... is to grow our status and stature as a total fabric resource; that is, to take advantage of our flexibility and diversity as a global player," Cunningham said. "Our commitment to the future of U.S. upholstery production in no way diminishes our investment in upholstery worldwide.
"We're expanding certain manufacturing capacity in Asia; we have a planned distribution investment in Europe; and we are continuing and strengthening a number of other international alliances."
Durham said increased U.S. capacity will keep Tietex nimble, prepared and able to react to customer needs.
Although Asian goods have a price advantage, Durham said, "You have to weigh the downside: buying nothing less than containers, tying up working capital with large inventories, product obsolescence, long lead times, lack of custom-tailored goods, not to mention the perils associated with copyright and intellectual property issues."
Durham said the company will continue to source some product, but is committed to shoring up domestic production.
Founded in 1974, Tietex is a manufacturer and supplier of fabrics with operations in the United States, Mexico, Thailand and Australia.
The seller of the plant, International Textile Group, was formed by the consolidation of Burlington Inds. and Cone Mills.
