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Unifi Forms Alliance With DuPont Adds To Worldwide Production Base

Unifi Inc., Greensboro, N.C., and DuPont, Wilmington, Del., have announced their intention to form a manufacturing alliance in the United States to produce polyester filament yarn. The alliance will optimize the companies partially oriented yarn (POY) manufacturing facilities, increase productivity and improve product quality. The alliance will only involve production.Under the terms of the agreement, DuPont and Unifi will cooperatively run their polyester filament manufacturing facilities, with a combined capacity of 800 million pounds, as a single unit, with DuPont managing the production planning and scheduling. According to the companies, production will be realigned among DuPonts Dacron® polyester filament plants in Kinston and Wilmington, N.C., and Unifis plant in Yadkinville, N.C., to take advantage of the unique capabilities of each site.DuPonts Dacron POY business and Unifis textured yarn business will remain separate entities.Unifi also recently announced its acquisition of Intex Yarns Ltd., Manchester, England, giving Unifi high-quality package dyeing capabilities in Europe. Intex will be renamed Unifi Dyed Yarns Ltd.According to Unifi, the new company enhances its flexibility to adjust to evolving market needs and represents an ongoing commitment to provide customers worldwide with a broader range of specialized products. The acquisition gives Unifi 4,000 tons of dye capacity annually."Our goal is to establish Unifi as a high-quality supplier of dyed yarns throughout Europe," said Brian Parke, Unifi CEO. "The acquisition is a logical addition to our yarn production facility in Letterkenny, Ireland, and allows us to offer our European customers a unique advantage in the marketplace."Unifi plans to upgrade the plant over the next 18 to 24 months. All employees will remain with the new company.

June 2000