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Springs Announces Two AFI Plant Purchases

Springs Industries Inc., Fort Mill, S.C., has announced that its wholly owned subsidiary, American Fiber Industries LLC (AFI), plans to purchase a new 300,000-square-foot facility in Martinsville, Henry County, Va., with an initial investment of $12.6 million.AFI will also purchase approximately 21 acres adjacent to the site for future expansion of the facility. The company also announced the likelihood of $2.9 million in additional investments over the next year.According to the company, the investments are expected to create 250 additional jobs, bringing AFIs Henry County employment to approximately 675. The company currently employees 425 people at a facility it leases in Ridgeway, Va.We are pleased to invest in Virginia with our growing AFI business, said Crandall C. Bowles, Springs chairman and CEO. We thank Henry County and the Commonwealth of Virginia for their assistance in making this investment possible. AFI represents one of our strongest product lines, and we anticipate future investment in Henry County.During the initial phase of this expansion, AFI will consolidate and expand its local manufacturing into the new facility. This phase will begin immediately and should be completed by the end of the year.AFI also announced it has purchased a 100,000-square-foot facility in Bartlesville, Okla., to manufacture pillows.According to the company, the initial investment of $3 million will create approximately 200 jobs and could lead to the creation of more than 360 jobs in the next five years.AFI also plans to purchase approximately 29 adjacent acres for future expansion projects.Adding to our California plant and the newly announced expansion of our Martinsville, Va., plant, Bartlesville is a strategic location in which to manufacture and distribute products for our growing AFI business, Bowles said.

June 1999