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Hanesbrands Closes Plants, Shifts Output To Other Facilities

Hanesbrands Inc., Winston-Salem, N.C., will close three manufacturing plants in Mexico and the Carolinas and move production to lower-cost company facilities in the United States, Caribbean basin and Central America. The closures will result in the loss of some 2,200 jobs including nearly 1,800 in Mexico and approximately 300 in the Carolinas.

Hanesbrands, the former Sara Lee Branded Apparel Americas/Asia business spun off from Chicago-based Sara Lee Corp., announced the actions a week after its launch as a newly independent, publicly traded company, noting they will allow it to improve flexibility and competitiveness in its global supply chain.

“We regret that employees at these locations will lose jobs, but we must design and continually update our network to take advantage of lower-cost, more effective production opportunities in order to remain competitive and generate growth that allows our overall organization to thrive,” said Gerald Evans, executive vice president and chief global supply chain officer.

The company’s plant in Monclova, Mexico, has approximately 1,700 employees who sew outerwear T-shirts, and fleece sweatshirts and pants. Production at that plant will be phased out through December 2006 and moved to other plants in the Caribbean basin and Central America. The transfer also will eliminate some 80 jobs at Hanesbrands’ fabric-cutting operation in Rosita, Mexico.

The company will cease outerwear T-shirt and sport-shirt fabric production at its Lumberton, N.C., plant by the end of November 2006 and move that production to facilities in Central America and Forest City, N.C. Some 260 employees in Lumberton will lose their jobs.

The Marion, S.C., sheer hosiery plant, which has some 145 employees, will close by the end of February 2007. Production will move to the company’s Clarksville, Ark., hosiery plant. Matt Hall, vice president, external communications, said Hanesbrands will add 60 positions in Clarksville to handle the additional production.

November/December 2006