Unifi, the manufacturer of Repreve recycled yarns and resins, is transferring its yarn production in Madison, North Carolina, to other plants in North and Central America, with the loss of approximately 250 jobs.

The closure is being made in order to improve efficiency and strengthen operations without sacrificing sales volume or creating disruptions in production capacity.

The company says the transition will allow for a significant increase in utilisation rates at its remaining facilities, improving fixed cost absorption and supporting enhanced long-term profitability.

The Madison plant will be put up for sale and proceeds will be prioritised for paying down existing debt.

“We are very grateful for the hard work, contributions and support from everyone involved with the Madison facility, including the community and employees, past and present,” said Unifi CEO Eddie Ingle. “We will work closely with our employees and community to ensure the smoothest transition possible and we are offering existing employees available opportunities at our other facilities in North Carolina.

 “The closure of this facility enables us to better align UNIFI’s manufacturing footprint with our growing customer base across North and Central America. It will enhance our cost structure and strengthen our balance sheet and we look forward to transitioning to a more robust operating profile, revitalising our Americas businesses and creating a more sustainable future for all our stakeholders.”

A vertically-integrated manufacturer, Unifi has direct operations in the USA, Colombia, El Salvador and Brazil, with sales offices all over the world. Using proprietary recycling technology, it has pioneered the transformation of post-industrial and post-consumer waste into sustainable new products.

www.unifi.com