Recession Forces Closing of Sylvania Yarn Systems

Sylvania, GA, Oct. 8, 2009--Sylvania Yarn Systems Inc. said it will close its carpet yarn manufacturing plant by the end of the year, ending a 40-year history in Screven County.

The company cited "the severe recession that the carpet industry has experienced for over a year, and the subsequent reduction in customer order volume at its plant," the Sylvania Telephone reported Wednesday.

"We regret the impact of this plant closing on our loyal and hard-working employees," said Harry Batty, the chief executive officer of SYS. "Our yarn products largely support manufacturers of commercial and residential carpeting. The customers of those firms have been severely impacted by the ongoing housing crisis, the downturn in the commercial real estate markets as well as the ongoing credit crisis. These factors have significantly reduced demand for our products."

The company said it plans an orderly wind-down of operations by year-end. The company avoided a similar fate in 1995, when employees organized to buy the plant from BASF and keep it open.

"We just weren't able to pull the rabbit out of the hat again," said Don Aaron, the president of the company. He has worked there 31 years.