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Shaw Closing Two Yarn Plants

Shaw Industries Group Inc. plans to shut down two yarn plants in Georgia: a spun yarn facility in Calhoun and a filament yarn plant in Valdosta.

The company blamed the closings on declining demand in many spun yarn- and filament yarn-based product categories, "including carpet and other flooring products." It added, "The housing sector is experiencing unprecedented difficulties, which impacts consumer demand...reduced demand necessitates that Shaw adjust and balance its production with changing customer preferences."

Shaw refers to these facilities as Plant 07 in Calhoun and Plant WL in Valdosta. About 600 employees will be affected between now and when production ceases at both facilities over the next several weeks.

"It is critical that Shaw maintain the best balance of cost and capacity in this challenging economic environment," a prepared statement said. "The company remains confident about the future of the carpet business for the long term and intends to protect and improve its competitive position and leadership in the industry."

Shaw Industries Group, Inc., a subsidiary of Berkshire Hathaway Inc., has about $5 billion in annual sales and employs 28,000.

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