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Guilford To Shutter N Y Facility

GUILFORD TO SHUTTER N.Y. FACILITYGuilford Mills, continuing a gradual exit of apparel fabric manufacturing in the U.S., announced plans to close its Cobleskill, New York, operation, putting about 500 employees out of work. The plant, which produced stretch knit fabric for intimate apparel and swimwear, will continue to operate through Nov. 8, servicing remaining orders.Guilford also plans to reduce its U.S. apparel business selling and administrative staff by 70%. Closing of the Cobleskill plant leaves Guilford with two apparel facilities in the U.S.: a circular knitting plant in N.C. and a printing plant in New York. Guilford also has two apparel dyeing and finishing operations in Mexico."The growing apparel imports, strong U.S. dollar and weak economy have resulted in significant financial losses," says John Emrich, president and CEO. "These factors, combined with the tightened credit in the U.S. textile industry, make it impossible for the company to sustain apparel dyeing and finishing in the U.S."Guilford has always believed it can effectively compete in the global apparel industry by manufacturing in Mexico and we intent to dedicate resources to apparel there. We are exploring apparel alliance opportunities in Mexico and the CBI region."October 2001