70 jobs will be lost at North Carolina plant
Greenville’s Delta Apparel announced plans last week to combine fabric production for material used in basic blank tees to its Ceiba Textiles facility in Central America.
The company will move the manufacturing operations of basic tees from its plant in Maiden, N.C., to Honduras, boosting the plant’s production by eight percent and roughly 900,000 pounds of fabric per week.
A statement issued by the company said the change in operations would be more cost-effective and was expected to shorten the production cycle by 10 days. The company will further reduce production in the U.S. to better align inventory levels with sales expectations. Total fabric production at the company’s North Carolina facility is expected to decrease by 35 percent.
Delta Apparel can no longer justify the additional cost associated with its current level of domestic fabric production for the competitive blank tee shirt business, said Bob Humphreys, chairman and CEO.
These kinds of decisions are always difficult, especially when they affect dedicated associates, he said. “We believe this economic decision is in the best long-term interest of Delta Apparel and our shareholders.”
Although the North Carolina facility will continue to employ roughly 190 of its current associates, the consolidation will impact 70 positions at the plant.
The movement of production to the Ceiba Textiles facility will be completed by the end of the month, and the company expects to see annual savings in excess of $1 million once the consolidation is finished.
Humphreys said Delta Apparel would continue to improve its manufacturing platform to ensure the introduction of new products.
“In the meantime, the company is managing costs to find ways to operate more efficiently,” he said.