Unifi's European operations will focus solely on the sales, distribution and service of textured yarn. The remaining manufacturing activities of the Company's Unifi Textured Yarns Europe division, which are based in Letterkenny, Ireland, will be closed as of the end of October. The Company expects a total charge associated with these actions to be in the range of $20 to $24 million.
Unifi will continue to supply customers in the United Kingdom and continental Europe with yarn produced in the United States and through Unifi Asia. The Company is in the process of determining appropriate sales, warehousing and distribution logistics to provide on-going service to customers based in the European Union.
“This facility has been unprofitable for a few years now, and although we took major steps in March this year to restructure our operations to fit anticipated market needs, it appears that the on-going volume will be lower than we estimated resulting in a loss again this next fiscal year,” said Fintan McGrath, President of Unifi Europe. “Therefore, we do not see that we have an opportunity to continue manufacturing here in Ireland.”
Unifi employs approximately 300 people at its Letterkenny facility, which started production in 1977. The Company is currently evaluating the options available to it with regard to the sale of land and buildings at its Letterkenny site, together with the redeployment or sale of all spinning and texturing equipment.
“Unifi has a long and proud history in Letterkenny, and it is extremely unfortunate that we have been overtaken by global events and conditions that are beyond our control,” said Brian Parke, Chairman and CEO of Unifi. “I wish to thank all of the individuals that have worked so hard for so many years, many of whom I have had the privilege of working with personally. This is a very difficult decision, but one that is necessary.”
