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Culp To Establish Operations In China

Culp To Establish Operations In ChinaCulp Inc. is setting up operations in China with the aim of improving its competitive position by taking advantage of lower production and raw materials costs in that country. The High Point, N.C.-based upholstery fabric and mattress ticking marketer will establish manufacturing and distribution operations in a 65,000-square-foot facility it has leased near Shanghai. The plant will offer value-added finishing to fabrics designed in-house and sourced from manufacturers in China. Culp also will be able to source low-cost yarn for use by its US manufacturing plants. The company expects to invest approximately $3 million primarily in manufacturing equipment and leasehold improvements, and plans to begin production with approximately 30 employees by November 1 of this year, eventually hiring up to 150 employees.Michael D. Messer will serve as vice president and general manager of the China operation. Newly appointed Product Manager Thomas E. Sibley Jr. is the liaison between Culps design group and its customers, and also is sales coordinator of China-sourced products.We believe the production from our China operation will complement rather than replace production at our other facilities and further enhance our competitive position, said Robert G. Culp III, chairman and CEO. In China, we will have the capacity to produce 150,000 yards of fabric per week, which represents approximately $25 million in annual sales for Culp. May 2003