Mohawk closing two U.S. carpet yarn plants

-- Home Textiles Today, 10/1/2008 1:48:00 PM

Calhoun, Ga. – Mohawk Industries announced it plans to permanently shut down two of its synthetic yarn manufacturing facilities – one in Dillon, S. C., and the other in Fort Oglethorpe, Ga.

The yarn made at these sites is used to produce carpeting; the company confirmed that these plant closings are unrelated to the Mohawk Home division of bath rugs, area rugs and door/floor mats businesses.

A gradual phasing out of operations at the two facilities has begun, and the sites are scheduled to be closed within 60 days.

Mohawk said it is ending operations at these facilities “as part of an ongoing process of effectively aligning yarn production with changing consumer demands.” Mohawk added it “continues to explore many strategies to retain its leadership position in the industry, including investments in product development, logistics enhancements, retailer support and marketing initiatives.”

At the time of the announcement, 137 individuals were employed at the Dillon facility and 235 were employed at the Fort Oglethorpe facility.

Steve Powers, Mohawk vp of yarn manufacturing and extrusion, said, “Changing consumer preference in carpet styling has shifted production away from spun yarn toward other carpet fibers,” said Powers. “This shift has created an excess capacity of spun yarn in the industry. To maintain an efficient operation, we must reduce areas of production where excess capacity emerges."