Greenville-based Delta Apparel said it will consolidate fabric production for basic, blank T-shirts from a North Carolina plant to its Ceiba Textiles facility in Honduras, eliminating 70 jobs.
The consolidation transfers production of some fabric manufactured at the company’s Maiden, North Carolina, plant to Honduras and increases production at the Ceiba Textiles facility by approximately 8 percent to roughly 900,000 pounds of fabric a week, Delta Apparel officials said.
The Maiden facility will continue to have approximately 190 workers producing fabric to support the company’s US-made marketed goods and private-label products, as well as the company’s Mexico sewing operations, Delta Apparel officials said.
“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, Delta Apparel’s chairman and chief executive officer.
“However, the company can no longer justify the additional cost associated with its current level of domestic fabric production for the highly competitive blank T-shirt business,” he said. “We believe this economic decision is in the best long-term interest of Delta Apparel and our shareholders.”
The change shifts fabric production for blank T-shirts to the company’s most cost-effective facilities and is expected to shorten the production cycle by approximately 10 days, Delta Apparel officials said.
In addition, the company is further reducing U.S. fabric production to better align inventory levels with sales expectations, the officials said. Total fabric production at the Maiden facility will decrease by approximately 35 percent, the officials said.
The movement of production to the Ceiba Textiles facility is scheduled to be completed by the end of June and Delta Apparel said it expects to realize annual savings of approximately $1.1 million.
Humphreys said Delta Apparel “is in an excellent position” for growth as economic conditions improve and consumer buying strengthens.
Delta Apparel, along with its operating subsidiaries M.J. Soffe LLC, Junkfood Clothing Co., To The Game LLC and Art Gun LLC, is an international design, marketing, manufacturing, and sourcing company with a portfolio of lifestyle basic and branded active-wear apparel and headwear.
The company has about 6,800 employees at production facilities in the U.S., Mexico, El Salvador and Honduras.