Shaw Exiting Area Rugs, Plant Will Make LVT

Dalton, GA, Jan. 6, 2014 -- Shaw Industries said it is exiting the area rug business and will spend $100 million to convert the current Ringgold, Georgia rug facility into a new luxury vinyl tile (LVT) manufacturing facility.

“The economics of the rug business today simply do not allow for future growth or encourage further investment,” said CEO Vance Bell.

“We have been intentional about exiting this business at a time when more opportunities exist for our associates.”

Shaw said most of its 400 employees of the Shaw Living rug division will have opportunities at other locations in the company. Customers will be serviced through a transition period.

LVT is the fastest growing category in the flooring market today. Shaw has been participating in this market for three years, but has outsourced production.

In repurposing the current rug facility to a new LVT manufacturing site, Shaw will be able to shorten the timeframe to begin manufacturing the product, utilize an existing facility, and keep jobs in the Ringgold area, the company said.

"This new facility will provide domestic manufacturing for a portion of our product line, allowing us to further enhance our product development, service, and overall customer satisfaction,” Bell said

The new plants expected to generate 200 new jobs in the Ringgold area, Shaw said.

This investment follows $250 million in other recent expansion announcements by Shaw in carpet tile, hardwood flooring, yarn extrusion, and distribution.


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