Beaulieu Canada Shuttering Wickham Yarn Plant

Wickham, Quebec, Canada, April 22, 2008--Beaulieu Canada said it will suspend production at its spinning plant in Wickham as of July 26 because of overcapacity.

The company's decision will affect the plant's eight management staff, the 69 unionized employees currently working at the plant and the 110 unionized employees who have been on the recall list for two years or less.

The plant produces yarn used mainly to manufacture carpets for the new housing construction market in Canada.

Since 2005, orders for spun yarns had reduced significantly, the company said. This reduction combined with a stronger Canadian dollar and having to sustain higher wages has led to uncompetitive conversion costs.

The type of yarns made at the Wickham facility will now be sourced from a related plant in the U.S.

Beaulieu Canada is seeking a buyer for the Wickham building and the plant's equipment. In the meantime, the company will continue to perform full interior and exterior maintenance at the plant.

The company will continue its manufacturing operations at its facility in Farnham and its two other facilities in Acton Vale. The Farnham plant produces continuous filament yarn. In Acton Vale, one of the plants produces carpeting while the other produces bath mats.

The production halt at the Wickham plant will not affect Beaulieu Canada's orders, customers or products, the company said.

Related Topics:Beaulieu International Group