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Shaw to contract out its Calhoun rug plant  

-- Home Textiles Today, 11/20/2008 2:08:00 PM

Dalton, Ga. – In an effort “to maximize efficiencies during a weakening retail market,” Shaw Industries Group, Inc. said it is contracting out the cutting, sewing and packaging functions of its Plant 7G rug facility here.

The departments will remain in operation through the middle of January.

Shaw said this new arrangement allows it to focus on the tufting, dyeing and coating portions of its operations at the plant. Shaw will partner with a Calhoun, Ga.-based company for the cutting, sewing and packaging functions.

The company said that it is expected that “a significant portion of the reductions will be accomplished through attrition over the remaining months of operation.” There will be 125 employees impacted.

Shaw, a subsidiary of Berkshire Hathaway Inc., is a major U.S. domestic manufacturer of area rugs and carpet as well as other floor coverings, with about $5 billion in annual sales.

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