Shaw to Shutter Yarn Plant
October 20, 2008,
Responding to decreasing demand for certain soft floor covering products, Shaw Industries Group Inc. plans to permanently shut down its spun yarn facility, which it calls Plant 76, in Trenton, Ga.
"The widely publicized downturn in the housing market has caused consumer demand to fluctuate and shift," explained Hal Long, evp of operations, adding that the company is experiencing over-capacity in certain segments of its business. "Changing customer preferences in the market necessitate that the company respond to emerging purchasing trends and decrease its production in areas experiencing significant declines."
The company confirmed the spun yarns from this plant are not used in Shaw Living's area rug and bath rug production.
Shaw Industries is a subsidiary of Berkshire Hathaway Inc. With $5 billion in annual sales, the company manufacturers and distributes a variety of floor covering products, including area and bath rugs, broadloom, hardwood, laminate and ceramic tile.
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