Hanesbrands Inc., Duofolds parent company, will close plants in Monclova, Mexico, Lumberton, N.C., and Marion, S.C., and move production to lower-cost manufacturing facilities. The closings will result in a reduction of approximately 2,185 jobs at these locations. Hanesbrands expects to take restructuring and related charges for the three plants totaling approximately $27 million during the current fiscal year, primarily during the fiscal first half that ends Dec. 30, 2006. $17 million of the charges will be non-cash.
The Monclova, Mexico, plant has approximately 1,700 employees and sews fleece sweatshirts and pants and outerwear T-shirts. Production will be moved to the Caribbean basin and Central America by the end of December 2006. Also, about 80 positions at HBIs Rosita, Mexico fabric cutting operation that supplies the Monclova plant will be eliminated as a result of the production transfer.
Production at the company's Lumberton, N.C. facility, which produces fabric for sport shirts and outerwear T-shirts, will cease by the end of November 2006. The plant has approximately 260 employees. Production will be shifted to Central America and the company's Forest City, N.C. plant.
The Marion, S.C. plant, which has approximately 145 employees, will cease production of sheer hosiery by the end of February 2007. Production will move into the company's Clarksville, Ark. hosiery production plant.
