N.C., has announced it 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 company said the actions, which will eliminate nearly 2,200 jobs at the three plants,
will allow it to improve the flexibility and competitiveness of its global supply chain.
“We are making significant improvements to the Hanesbrands supply chain in order to maximize
execution, service levels, value creation, consistency and speed to market,” said Gerald Evans,
executive vice president and chief global supply chain officer. “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.”
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 result in the elimination of some 80 jobs at Hanesbrands’ fabric-cutting operation in
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 Central American facilities and
its plant in Forest City, N.C. Approximately 260 employees in Lumberton will lose their jobs.
The Marion, S.C., sheer hosiery production plant, which employs some 145 people, will close
by the end of February 2007. That production will be shifted to the company’s hosiery plant in
Clarksville, Ark. According to Matt Hall, Hanesbrands’ vice president, external communications, 60
positions will be added in Clarksville to handle the additional production there.
Hall said all employees losing their jobs, including those in Mexico, will be eligible for
severance benefits. In addition, state and local agencies will provide transition services to
affected employees in the Carolinas.
September 19, 2006