Delta Apparel Inc. — a Greenville-based manufacturer of branded and private-label activewear and headwear — has announced plans to transfer some of its fabric production for basic, blank T-shirts from its Maiden, N.C., plant to its Ceiba Textiles facility in Honduras, in an effort to lower product costs on basic T-shirts.
The consolidation will decrease total fabric production at the Maiden facility by approximately 35 percent and increase production at Ceiba by approximately 8 percent to some 900,000 pounds of fabric weekly. The company expects the consolidation will shorten the production cycle time by approximately 10 days and help it save some $1.1 million annually. According to Delta Apparel, reducing its U.S. production will better align inventory levels with sales expectations.
The move will result in the elimination of 70 jobs at the Maiden plant, which will retain 190 employees and will continue fabric production to support its U.S.-made marketed goods and private-label products along with its Mexico sewing operations.
“These decisions are always difficult, especially when they affect associates who have been dedicated and loyal to our Company for many years,” said Bob Humphreys, Chairman and CEO, Delta Apparel. “However, the Company can no longer justify the additional cost associated with its current level of domestic fabric production for the highly competitive blank tee shirt business. We believe this economic decision is in the best long-term interest of Delta Apparel and our shareholders.”
The company has begun the consolidation and expects it to be completed by the end of this month.
June 10, 2014
