Culp Shutters Two U.S. Plants
By Staff -- Home Textiles Today, 1/8/2007 12:00:00 AM
High Point, N.C. —
Still working its way through a painful restructuring as it combats foreign imports by shifting production off-shore, upholstery supplier Culp Inc. said it will close two more U.S. plants, eliminating 185 jobs.
As its Chinese manufacturing operation continues to grow, Culp said it will close a yarn facility in Lincolnton, N.C., and a weaving plant in Graham, N.C.
The company's remaining upholstery operations in the United States will be consolidated into an existing plant in Anderson, S.C., employing about 150 workers.
Rob Culp III, ceo, said, "We have made considerable progress in changing our product strategy, reducing our manufacturing complexities, and improving our cost structure in the U.S. upholstery fabric business. At the same time, we have been diligently growing our China-produced business."
Culp said the closing will result in pre-tax charges of about $7.3 million, mostly in the form of non-cash items, to be divided between the third and fourth quarters.
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