Culp Selling Yarn Equipment
Operation Will Shut Down During Company's Second Quarter
By Staff -- Home Textiles Today, 9/5/2005 12:00:00 AM
High Point, N.C. — —
High Point, N.C. —Culp, Inc. plans to reduce its U.S. yarn manufacturing operations by selling the company's polypropylene yarn extrusion equipment located in Graham, N.C., to American Fibers and Yarns Company.
The buyer is one of Culp's suppliers based in Chapel Hill, N.C., and the price is $1.1 million.
As a result, Culp will close this operation during the company's second quarter ending Oct. 30.
The company has a long-term supply contract with American Fibers and Yarns Company to continue providing Culp with polypropylene yarn.
The company also stated it would further reduce its yarn operations by closing a facility in Shelby, N.C., and consolidating the chenille yarn operations into the Lincolnton, N.C., facility.
Culp will now outsource the open-end yarns previously produced at Shelby and will then have one yarn plant in Lincolnton for producing chenille and wrap-spun yarns and a small texturizing yarn operation in Graham.
Overall, these actions will reduce the number of Culp associates by approximately 100 people.
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