Shaw to Close Plant
South Pittsburg, TN, Jun. 14--Shaw Industries Inc. will cut 390 jobs in South Pittsburg when it closes its plant in August, the carpetmaker's executive vice president said.
Julius Shaw said the company is closing the plant due to reduced demand for the spun nylon yarn made at the plant.
"In the end the decision was made due to the need to balance our yarn production capacity," he said.
Shaw said the company would try to help idled employees find jobs in other plants within 50 miles of Marion County.
"I don't believe we will be able to place all of those employees, but I hope to be able to place over the next several months a good percentage, in the range of 10 to 20 percent," Shaw said.
Marion County Mayor Howell Moss described the plant closing as "devastating." Moss said Shaw executives did not give him any notice.
"I would have loved to have had the opportunity to talk with (Shaw) to see if we could make some concessions, look at some tax breaks," Moss said.
He said Marion County officials are courting four companies that might locate to the area.
"We will make every attempt for those jobs to come here," he said. "I hope and pray the companies we are dealing with now come in real quick."
Shaw Industries employs about 30,000 workers, most of them in Northwest Georgia.
Officials said the company has operated the plant since 1991, when it purchased Salem Carpet Mills.
Related Topics:Shaw Industries Group, Inc.
