UNIFI®, Makers of REPREVE®, Announces U.S. Manufacturing Transition
Unifi (NYSE: UFI), a leader in recycled and synthetic yarn, announced plans to transition production from its Madison, North Carolina facility and put the property up for sale in 2025. The company will consolidate production into its existing facilities across North and Central America.
The strategic move aims to improve efficiency, lower fixed costs, and enhance profitability without impacting sales volume or production capacity. The consolidation will increase utilization rates at remaining facilities and improve fixed cost absorption. Proceeds from the property sale will be used to reduce existing debt.
The company will relocate certain equipment to maintain business continuity and customer service levels. UNIFI is offering existing Madison employees opportunities at other North Carolina facilities to ensure a smooth transition. Additional details will be provided during the company's Q2 fiscal 2025 earnings call on February 6, 2025.
Unifi (NYSE: UFI), leader nel settore dei filati riciclati e sintetici, ha annunciato piani per trasferire la produzione dal suo stabilimento di Madison, Carolina del Nord, e mettere in vendita la proprietà nel 2025. L'azienda consoliderà la produzione nelle strutture esistenti in Nord e Centro America.
Questa mossa strategica mira a migliorare l'efficienza, ridurre i costi fissi e aumentare la redditività senza compromettere il volume delle vendite o la capacità produttiva. La consolidazione aumenterà i tassi di utilizzo delle strutture rimanenti e migliorerà l'assorbimento dei costi fissi. I proventi dalla vendita della proprietà saranno utilizzati per ridurre il debito esistente.
L'azienda trasferirà alcune attrezzature per mantenere la continuità aziendale e i livelli di servizio al cliente. UNIFI offre opportunità ai dipendenti attuali di Madison in altri stabilimenti della Carolina del Nord per garantire una transizione fluida. Ulteriori dettagli saranno forniti durante la call sugli utili del secondo trimestre dell'esercizio fiscale 2025, il 6 febbraio 2025.
Unifi (NYSE: UFI), líder en hilos reciclados y sintéticos, anunció planes para transferir la producción de su instalación en Madison, Carolina del Norte, y poner la propiedad en venta en 2025. La compañía consolidará la producción en sus instalaciones existentes en América del Norte y Central.
Este movimiento estratégico tiene como objetivo mejorar la eficiencia, reducir los costos fijos y aumentar la rentabilidad sin afectar el volumen de ventas ni la capacidad de producción. La consolidación aumentará las tasas de utilización en las instalaciones restantes y mejorará la absorción de costos fijos. Los ingresos de la venta de la propiedad se utilizarán para reducir la deuda existente.
La empresa trasladará ciertos equipos para mantener la continuidad del negocio y los niveles de servicio al cliente. UNIFI está ofreciendo oportunidades a los empleados actuales de Madison en otras instalaciones de Carolina del Norte para garantizar una transición fluida. Se proporcionarán detalles adicionales durante la llamada de ganancias del segundo trimestre del ejercicio fiscal 2025, el 6 de febrero de 2025.
유니피 (NYSE: UFI), 재활용 및 합성 섬유의 선두주자로, 노스캐롤라이나주 매디슨에 있는 생산 시설의 이전 계획을 발표하고 2025년에 해당 부동산을 매각할 예정이라고 발표했습니다. 회사는 북미 및 중미에 있는 기존 시설로 생산을 통합할 것입니다.
이 전략적 이동은 효율성을 개선하고 고정 비용을 낮추며 판매량이나 생산 능력에 영향을 주지 않으면서 수익성을 높이는 것을 목표로 하고 있습니다. 통합은 나머지 시설의 활용률을 높이고 고정 비용 흡수를 개선할 것입니다. 부동산 판매로 발생하는 수익은 기존 부채를 줄이는 데 사용될 것입니다.
회사는 비즈니스 연속성 및 고객 서비스 수준을 유지하기 위해 일부 장비를 이전할 것입니다. UNIFI는 매디슨의 기존 직원들에게 노스캐롤라이나의 다른 시설에서의 기회를 제공하여 원활한 전환을 보장하고 있습니다. 추가 세부사항은 2025년 2월 6일에 있을 회사의 2025 회계 연도 2분기 실적 발표에서 제공될 예정입니다.
Unifi (NYSE: UFI), leader dans le domaine des fils recyclés et synthétiques, a annoncé des projets de transfert de sa production de son installation de Madison, Caroline du Nord, et de mettre la propriété en vente en 2025. L'entreprise va consolider sa production dans ses installations existantes en Amérique du Nord et centrale.
Ce mouvement stratégique vise à améliorer l'efficacité, à réduire les coûts fixes et à augmenter la rentabilité sans impacter le volume des ventes ni la capacité de production. La consolidation augmentera les taux d'utilisation des installations restantes et améliorera l'absorption des coûts fixes. Les revenus de la vente de la propriété seront utilisés pour réduire la dette existante.
L'entreprise transférera certains équipements pour maintenir la continuité des affaires et les niveaux de service client. UNIFI offre aux employés actuels de Madison des opportunités dans d'autres installations en Caroline du Nord pour garantir une transition en douceur. Des détails supplémentaires seront fournis lors de l'appel des résultats du deuxième trimestre de l'exercice fiscal 2025, le 6 février 2025.
Unifi (NYSE: UFI), ein führendes Unternehmen in der Herstellung von recycelten und synthetischen Garnen, hat Pläne angekündigt, die Produktion von seinem Standort in Madison, North Carolina, zu verlagern und die Immobilie 2025 zum Verkauf anzubieten. Das Unternehmen wird die Produktion in seine bestehenden Einrichtungen in Nord- und Mittelamerika konsolidieren.
Dieser strategische Schritt zielt darauf ab, die Effizienz zu verbessern, die Fixkosten zu senken und die Rentabilität zu steigern, ohne das Verkaufsvolumen oder die Produktionskapazität zu beeinträchtigen. Die Konsolidierung wird die Auslastungsraten der verbleibenden Einrichtungen erhöhen und die Absorption der Fixkosten verbessern. Die Erlöse aus dem Verkauf der Immobilie werden verwendet, um bestehende Schulden zu reduzieren.
Das Unternehmen wird bestimmte Geräte verlagern, um die Geschäftskontinuität und die Kundenservicestandards aufrechtzuerhalten. UNIFI bietet den bestehenden Mitarbeitern in Madison Möglichkeiten in anderen Einrichtungen in North Carolina an, um einen reibungslosen Übergang zu gewährleisten. Weitere Einzelheiten werden während des Ergebnisberichts für das zweite Quartal 2025 am 6. Februar 2025 bekannt gegeben.
- Strategic consolidation to improve operational efficiency and profitability
- Increased utilization rates at remaining facilities
- Future property sale proceeds to reduce debt
- No impact on production capacity or sales volume
- Closure of Madison, NC manufacturing facility
- Potential workforce displacement requiring relocation
Insights
UNIFI's strategic consolidation of its Madison facility operations marks a decisive move to address operational inefficiencies in a challenging textile market environment. The restructuring carries several key implications for investors:
Financial Impact: The consolidation should yield multiple benefits: 1) Improved capacity utilization across remaining facilities will enhance fixed cost absorption 2) Reduced overhead costs from operating fewer locations 3) Strengthened balance sheet through debt reduction from property sale proceeds 4) Potential working capital optimization through inventory consolidation.
Operational Efficiency: The decision to maintain production capacity while reducing physical footprint suggests:
- Current facilities were operating below optimal capacity
- Significant opportunity exists to improve operational leverage
- Supply chain optimization potential through geographic consolidation
Market Positioning: This restructuring aligns with broader industry trends where textile manufacturers are optimizing their North American operations to remain competitive against Asian imports. The commitment to maintain REPREVE® innovation and production capacity indicates UNIFI is protecting its core competitive advantage in sustainable textiles while streamlining operations.
The timing of this announcement, ahead of Q2 FY2025 earnings, suggests management is proactively addressing operational inefficiencies to improve profitability metrics. While there will be near-term transition costs, the long-term benefits to operating margins and balance sheet strength make this a strategically sound decision for the company's future positioning.
Strategic decision to enhance operating efficiency, lower fixed costs, improve profitability and further strengthen balance sheet
Key Highlights:
- The footprint reduction will improve efficiency and strengthen operations to better support customers’ needs without sacrificing sales volume or creating disruptions in production capacity.
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The transition will 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. - To maintain business continuity and customer service levels, certain equipment will be relocated to meet the current and growing needs of the market.
- Proceeds from the future sale of the property will be prioritized against paying down existing debt.
Eddie Ingle, Chief Executive Officer of UNIFI, Inc., stated, “We are very grateful for the hard work, contributions, and support from everyone involved with the
Ingle continued, “The closure of this facility enables us to better align UNIFI’s manufacturing footprint with our growing customer base across North and
Additional details on the strategic transition will be provided during the Company’s upcoming second quarter fiscal 2025 earnings conference call that will take place on February 6, 2025, at 8:00 a.m. Eastern Time.
About UNIFI
UNIFI, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. Using proprietary recycling technology, UNIFI is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. Through REPREVE, the world’s leading brand of traceable, recycled fiber and resin, UNIFI is changing the way industries think about the materials they use – and reuse. A vertically-integrated manufacturer, the company has direct operations in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250203968043/en/
Media inquiries:
Melissa Henkle
Director of Marketing & Communications
336-316-5473
mhenkle@unifi.com
Investor inquiries:
Josh Carroll or Blaine McNulty
Alpha IR Group
312-445-2870
UFI@alpha-ir.com
Source: Unifi, Inc.
FAQ
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