WPS shuts several plants, eliminates nearly 2,500 jobs
Staff Staff -- Furniture Today, January 10, 2005
NEW YORK — In a move to consolidate its bedding manufacturing, WestPoint Stevens will close its Alamance Plant and Distribution Center in Burlington, N.C.; its Clemson, S.C., Fabricating and Greige Plants as well as Distribution Center; and its Middletown, Ind., Plant, while reducing more than 50 percent of the staff at its Clemson Finishing Plant.
The company’s bath manufacturing will also be consolidated with the closing of its Drakes Branch,Va., Plant. Facility closings will take place in late March or early April.Roughly 2,465 employees will be affected. The Alamance Plant and Distribution Center staffs 560; Clemson Fabricating Plant and Distribution Center employs about 760; Clemson Greige Plant, about 340; Drakes Branch Plant, about 450; and Middletown Plant, approximately 110. At the Clemson Finishing Plant, some 245 jobs will be eliminated.According to company officials, the closings and reductions are directly related to the removal of textiles quotas from low-wage countries. While some of the production at these locations will be shifted to other facilities, a significant amount will now be sourced from other countries.Lorraine Miller, senior vice president, finance and external communications, said, "It’s unfortunate we had to do this because we are not competing on a level playing field. These moves will better help us compete and strike the right balance between domestic production and global sourcing.""This is another move in our ongoing strategy of adjusting as necessary to meet the challenges of doing business globally," explained Chip Fontenot, WestPoint Stevens president and CEO. "We must be flexible in maintaining the most profitable balance between our domestic manufacturing and goods sourced from overseas. This becomes more critical with quotas removed."This restructuring will strengthen the company with better-aligned capacity and greater freedom to market in a cost-efficient way those products most in-demand. Our goal, of course, is to ensure the company’s growth and profitability in a global economy," he emphasized."We deeply appreciate the associates at these locations — indeed all our associates," said Fontenot. "Their skills and perseverance over the years have made WestPoint Stevens a leader in our industry, and we sincerely regret that this restructuring is made necessary by today’s global marketplace, where so many of our products can be produced much less expensively in countries other than theU.S."As in past closings and workforce reductions, WestPoint Stevens will apply by individual facility for assistance for laid-off associates as per the Trade Act of 1974. In areas where affected plants are located near other WestPoint Stevens facilities, the company will attempt to place laid-off associates in jobs at the other plants.
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