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Knitting / Apparel

Delta Apparel To Close Alabama Facility

Delta Apparel Inc., a Duluth, Ga.-based manufacturer of branded and private label activewear, has announced plans to close its manufacturing facility in Fayette, Ala., as part of its restructuring of US textile operations. The closure, expected to take place in the third quarter of 2007, will eliminate 110 jobs.

The company will continue to operate two domestic manufacturing plants: one in Maiden, N.C., where it recently consolidated the manufacture of its FunTees textiles; and the other in Fayetteville, N.C. Delta also expects to open its new manufacturing facility in Honduras next quarter. That plant is expected to produce 500,000 pounds of fabric per week by the fourth quarter of fiscal year (FY) 2008, which will end June 28, 2008; and to double that production by the third quarter of FY 2009.

“We continue to focus on improving the performance of our wholesale activewear business,” said Robert W. Humphreys, president and CEO, adding that the company’s focus also includes maximization of the performance of all major areas of its business. “After evaluating our alternatives, we determined that we must eliminate some of our domestic manufacturing capacity. It is difficult to eliminate the jobs of these employees who have contributed significantly to our growth and success over the years. However, we believe the relocation of some of our US textile capacity to Central America is necessary to be cost-competitive against other global producers.”

September/October 2007