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Unifi is closing shop in Madison, North Carolina.
The maker of Repreve recycled synthetic yarns said it’s placing the 947,000-square-foot manufacturing plant on the market sometime this year. All production out of the factory, which opened around 20 years ago, will be consolidated into Unifi facilities in North and Central America.
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“We are very grateful for the hard work, contributions, and support from everyone involved with the Madison facility, including the community and employees, past and present,” CEO Eddie Ingle said in a statement. “We will work closely with our employees and community to ensure the smoothest transition possible, and we are offering existing employees available opportunities at our other facilities in North Carolina.”
The fiber science firm said 91 employees will be affected by the closure, reported by the North Carolina publication Winston-Salem Journal. Unifi did not respond to Sourcing Journal’s request for comment to confirm. If the Pantone partner’s other facilities in Madison—including an owned 31,000-square-foot manufacturing plant and a leased 102,000-square-foot warehouse—are impacted is also unclear.
Of the potential relocation options, the vertically integrated manufacturer’s corporate headquarters is about 30 miles north in the neighboring city, Greensboro, with five manufacturing facilities about 55 miles southwest in Yadkinville and two plants 20(ish) miles east in Reidsville. The Reidsville manufacturing component for Unifi is two owned manufacturing plants at 384,000 and 160,000 square feet and a leased 91,000 square feet warehouse.
In Reidsville, Unifi has two manufacturing facilities—owning both buildings totaling over 540,000 square feet—and leasing a 91,000-square-foot warehouse. In Yadkinville, the global leader in branded recycled performance owns over 1.8 million square feet of manufacturing space.
“The closure of this facility enables us to better align Unifi’s manufacturing footprint with our growing customer base across North and Central America,” Ingle said. “This move, which involves relocating some machinery to other manufacturing locations, will enhance our cost structure and strengthen our balance sheet.”
The move, more specifically, is part of a larger plan to keep Unifi fiscally afloat and repay its $140 million debt.
Unifi has taken fiscal hits in recent years, reporting concern over weak global demand and the financial health of its clients impacting overall profitability in its most recent annual report. Plus, even though Unifi maintained a decent margin, the report indicated that this weaker fixed cost absorption is eating into earnings.
“Importantly, this transition will not impact our ability to meet the demands of the market, or our strategic initiatives focused on innovation, the Repreve portfolio, and continuous financial improvement,” Ingle said. “We look forward to transitioning to a more robust operating profile, revitalizing our Americas businesses, and creating a more sustainable future for all our stakeholders.”