Hanesbrands Inc. announced in late March that it will close its Stratford Road textile manufacturing plant in Winston-Salem, N.C., and move production to existing lower-cost plants in the Caribbean basin and Central America.

Production at the Stratford Road plant, which makes underwear and panty fabric, will substantially end by June 30, 2007. The plant’s print fabric operation, which employs fewer than 20, is expected to cease production by the end of the year. In total, the closure will eliminate positions for the plant’s current 610 employees.

The company will provide severance benefits and career transition assistance to employees and will apply to the federal government for U.S. Trade Adjustment Act assistance for affected employees. Also, affected employees will be allowed to seek open positions at the company’s other manufacturing and distribution operations in the Winston-Salem area.

“Determining that we need to close our hometown Stratford Road textile manufacturing plant to remain competitive was a very difficult decision, although the closure is absolutely necessary,” said Gerald Evans, Hanesbrands Inc. executive vice president and chief global supply chain officer. “We have great employees at the Stratford Road plant, and this decision is not reflective of their skill, dedication and capabilities. We will work to help these employees find placement within the community. We are proud to call Winston-Salem and Forsyth County home where we have more than 4,000 employees.”

Moving the Stratford Road textile production to the company’s existing manufacturing facilities in the lower-cost Caribbean basin and Central America regions is part of the company’s continuing long-term global supply chain strategy.

“Over the past several years, we have developed our textile manufacturing capability in the Caribbean and Central America in order to improve the competitiveness, effectiveness and value of our supply chain operations,” said Evans. “We now have enough production capacity to absorb our Stratford Road production into these newer, lower-cost textile operations, which also helps us align the flow of textiles into our sewing network. This move is an economic necessity in today’s competitive global market and gives us the opportunity to generate growth that allows our overall organization to thrive.”

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