Unifi to close Madison, North Carolina, manufacturing facility

Unifi Inc., a manufacturer of recycled and synthetic yarn headquartered in Greensboro, North Carolina, has revealed plans to transition yarn production out of its manufacturing facility in Madison, North Carolina, and will place the property for sale this year. Production activities currently occurring at the Madison facility will be consolidated into Unifi sites in North and Central America.

According to a Worker Adjustment and Retraining Notification (WARN) filing by the company Feb. 3, the closure of the Madison facility will affect approximately 91 employees, effective Sept. 25.

RELATED: Unifi expands Repreve offerings with new filament yarn, insulation

Regarding the move, Unifi says the footprint reduction will:

• improve efficiency and strengthen operations to better support customers’ needs without sacrificing sales volume or creating disruptions in production capacity;
• allow for a significant increase in utilization rates at the remaining facilities across North and Central America, improving fixed cost absorption and supporting an enhanced long-term profitability profile;
• maintain business continuity and customer service levels as certain equipment will be relocated to meet the current and growing needs of the market; and
• allow for proceeds from the future sale of the Madison property to be prioritized against paying down existing debt.

“We are very grateful for the hard work, contributions and support from everyone involved with the Madison facility, including the community and employees, past and present,” Unifi CEO Eddie Ingle says. “We will work closely with our employees and community to ensure the smoothest transition possible, and we are offering employees available opportunities at our other facilities in North Carolina.

“The closure of this facility enables us to better align Unifi’s manufacturing footprint with our growing customer base across North and Central America. This move, which involves relocating some machinery to other manufacturing locations, will enhance our cost structure and strengthen our balance sheet. Importantly, this transition will not impact our ability to meet the demands of the market, or our strategic initiatives focused on innovation, the Repreve portfolio and continuous financial improvement. We look forward to transitioning to a more robust operating profile, revitalizing our Americas businesses and creating a more sustainable future for all our stakeholders.”

Additional details on the transition will be provided during the company's upcoming second quarter fiscal 2025 earnings conference call Feb. 6.