Shaw, Mohawk Continue To Downsize Operations

Dalton, GA, Dec. 2, 2008--Shaw Industries is closing a carpet fiber facility in Anderson, S.C., next month, while Mohawk Industries will shut down a distribution center in Shannon, Ga. over the next 60 days, according to a story in the Dalton Daily Citizen.

Mohawk Industries has laid off more than 1,000 workers in Georgia and South Carolina this year. Shaw Industries has cut several hundred jobs, most recently saying it will eliminate 125 positions at a Calhoun rug plant. The company also announced plans to cut 3 percent of its North Georgia work force this year, which could amount to between 450 and 480. The Dixie Group has also cut its work force significantly this year.

The newspaper said that Shaw officials decided to close the Anderson plant due to a decrease in demand and expansions at other fiber facilities. The company, which is the world’s largest carpet manufacturer, in recent months has unveiled plans for expansions at plants in Columbia, S.C., and Andalusia, Ala.

Shaw acquired the Anderson facility as part of its purchase of the U.S. nylon fibers business of Honeywell International in 2005, Hal Long, executive vice president of operations told the newspaper.

He said the Anderson facility does not offer a competitive advantage for Shaw compared to other internal options.

Production at the Anderson site will end sometime near Jan. 29.

Mohawk is “constantly evaluating business strategies to improve customer service while reducing costs,” said John Ames, Mohawk’s vice president of transportation and warehousing. The Shannon site will shutter within 60 days.

Ames said that maintaining a small warehouse like Shannon with larger, more modern facilities nearby was no longer practical or cost effective.

Mohawk Industries is the world’s largest floorcovering manufacturer.

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