Shaw Industries will be consolidating some operations to Ringgold, Ga., which means a plus for Catoosa County but a loss of jobs in Gordon County.
All manufacturing equipment for Shaw Living, the company's rug division, will be moved to a plant in Ringgold over the next few months, according to a statement released Tuesday.
"Obviously, some of those jobs will follow as we move that equipment," said Human Resources Manager Al Scruggs.
Shaw -- one of the world's largest carpet manufacturers -- said the move will include all of Living's assets, including design, manufacturing, sales and distribution.
Scruggs said the "math won't be too much different" in terms of jobs created and lost, but some workers would choose not to move 30 miles up Interstate 75. He said affected employees will have first shot at other openings in nearby plants.
SHAW INDUSTRIES* Headquartered in Dalton* World's biggest carpet manufacturer* Does more than $4 billion in annual sales* Employs about 25,000 people worldwideSource: Company news release
Herb Upton, Shaw Living director of operations, said the shift will "be a significant benefit to our customers" because it will improve customer service and improve the logistics and efficiency of getting the products to market.
"This undertaking demonstrates our continued commitment to improving our position as a world-class supplier of machine-made woven and tufted rugs," Upton said in the statement.
Company spokeswoman Celia Payne would not say how many employees would be affected, but she said all current employees should be able to stay with the company.
"Our belief is that all associates will have immediate and future job opportunities within Shaw Industries," she said.
Kemp Harr, publisher of Floor Focus magazine, a flooring industry trade publication, said the move makes sense. Shaw, he said, grew by acquiring smaller companies, so the company infrastructure probably had some duplication.
"If you can make a big plant work, there are some savings there," he said.
Harr said rugs are a $2.2 billion industry and Shaw is a "major player." Market conditions for carpet -- and particularly rugs -- are starting to show signs of leveling out after years of sagging sales, and experts predict improvement in 2011.
Harr said the consolidation probably is not a reaction to the market but more likely a part of a long-term business strategy.
Contact staff writer Andy Johns at ajohns@timesfree press.com or call 423-757-6324.