Processing Magazine

Hanesbrands will close 9 plants, cut 8,100 jobs

September 29, 2008

Apparel maker Hanesbrands Inc. will close nine plants across five countries and cut about 12 percent of its work force as it restructures its operations in order to cut costs, according to the Associated Press. Those closings include sewing plants in El Salvador, Honduras and Costa Rica, as well as two yarn plants in Eden, N.C. and Gastonia, N.C., a knit-fabric textile plant in Forest City, N.C., and an inventory storage warehouse in Rockingham, N.C. By the end of next summer, it will close a sewing plant in Mexico and its last large knit-fabric textile plant in the U.S., located in Eden. Textile production from the plants closed will be absorbed into existing plants in Central America. Most of the sewing production from Central American plants that are closing will be moved to the company''s Vietnam and Thailand plants. The moves will eliminate the jobs of about 8,100 workers in the U.S. and Central America, while the company plans to add 2,000 jobs in Asia. The maker of Hanes and Champion apparel said it is expanding production in Asia and consolidating into fewer and larger plants in lower-cost countries. The moves will cost $76 million, with about two-thirds of that recorded in the third quarter of 2008. Hanesbrands expects to increase its work force in Asia from 4,000 today to 6,000 by the end of 2008. The company is also building a textile fabric plant in Nanjing, China, which is expected to begin to ramp up production in 2009 to supply fabric to the company''s expanding Asian sewing network.