OW America, Sphinx Merge

Oriental Weavers Decides to Combine Importing, Domestic Branches

By Cecile B. Corral -- Home Textiles Today, 9/12/2005 12:00:00 AM

Dalton, Ga. — —

Dalton, Ga. — Oriental Weavers Group is merging its importing division, Sphinx, with its domestic manufacturing branch, OW America, in what the company described last week as an effort to further strengthen the latter's position in North America.

All sales, marketing and manufacturing functions will operate as one company, but products will continue to be marketed under the Sphinx and OW America brand names. Machine-made rugs are the dominant offerings for both OW America, which serves mass merchants and home centers, and Sphinx, which caters to department, specialty and furniture stores. But under this restructuring, both sides are stepping up their hand-made rug offerings.

Leading this newly combined operation is Mike Riley, who has been promoted to president. He was formerly executive vice president, Sphinx. Riley reports to Ahmed Salama, CEO and president, Oriental Holdings.

“The move will allow the company to fully utilize the assets of each organization and ensure the most beneficial solutions for our customers by capitalizing on our synergies,” Riley said. “In continuing to grow Oriental Weavers into a truly global organization, we will employ a concerted strategic focus to capitalize on our various operations in the U.S., Egypt and Asia.”

The company also said it expects to open in the next 18 months production facilities for machine-made, tufted and printed rugs in Turkey, Lebanon and Indonesia. The company already owns and operates production and distribution facilities in several countries, including Egypt, China and India.

The merger comes one year after the two divisions announced they would together expand their product offerings beyond rugs to include coordinate pieces, like top-of-bed, decorative pillows, throws and bath rugs.

Another category the company will eventually add to its offerings in the U.S. market is bath towels, Riley said. Using machinery it bought from Fieldcrest, the company just started production on bath towels to serve the European market.

In related news, longtime company executive Steve Stultz resigned from his post as senior vice president of OW America.