A purchase agreement between two flooring giants could save hundreds of Jackson County, Ala., jobs from the chopping block over time.
Mohawk Industries has agreed to buy the former Beaulieu America carpet plant, which had planned to phase out more than 300 jobs this year.
"To support the growing demand for its carpet and rug collections, Mohawk has purchased a fiber plant in Bridgeport, Ala.," Mohawk Flooring North America President Brian Carson said in the statement issued by the Alabama Department of Commerce on Monday.
"We are impressed with the Bridgeport plant's team and manufacturing capabilities, and we look forward to growing the plant to produce innovative fibers into the future," Carson said.
Fast facts
› Mohawk Industries is the world’s largest flooring manufacturer with products including carpet, rugs, ceramic tile, laminate, wood, sheet vinyl and luxury vinyl tile.› Mohawk operates manufacturing facilities in 11 states and 15 countries, and the company’s products are sold in more than 160 nations. The Fortune 500 manufacturing company reported sales of $9 billion in 2016, and employs more than 37,800 people around the globe.Source: Alabama Department of Commerce
President of flooring for North America Brian Carson watches a speaker during a ribbon-cutting at Mohawk Flooring Center on Thursday, Nov. 12, 2015, in Calhoun, Ga. Mohawk cut the ribbon Thursday on its new LEED gold-certified building at its Calhoun campus.
Officials in Jackson County said the job-saving acquisition avoids a complete shutdown of one of the county's biggest employers.
"We are very proud to have Mohawk in Jackson County," Jackson County Economic Development Authority interim president and CEO Shelia Shepard said. "They are a first-class company that will be a huge asset to our population. We're particularly proud that we were able to make the deal happen to replace those jobs."
Shepard said officials "fully expect" the factory to return to 300 or more jobs over time, and the plant will continue to produce some fiber yarn for carpet during the transition, she said.
The Bridgeport plant - open since 1987 - was Jackson County's second-largest employer when plans for shutdown were announced in January. Beaulieu officials said then that the operation would be whittled down to 15 to 20 workers by the end of March.
At the same time, Beaulieu also launched efforts to find a buyer for the plant and local agencies, economic development agencies, utilities and government entities joined forces in the campaign to find a buyer.
Mohawk already has employed some of the employees who worked for Beaulieu and is actively recruiting people to meet staffing needs.
State officials said that the company plans to significantly modernize and upgrade the equipment and building, and the company anticipates increasing its workforce in Bridgeport as the plant's manufacturing capacity is expanded.
Jackson County officials said the revival of the fiber plant represents a major economic boon to Bridgeport, a community with a population of around 2,400.
"We are excited to welcome Mohawk to Bridgeport," Bridgeport Mayor Bubba Hughes said in the release. "We are eager to work with them to make their move a success."
Most of the operations at the Bridgeport factory produced extruded nylon, polyester and polypropylene fibers and provided heat set and cabling for fibers.
"This transaction by Mohawk, which supports employment growth in Jackson County, was facilitated by teamwork and a determination to find a new owner for a manufacturing facility that has been critical to the vitality of its community," Secretary of the Alabama Department of Commerce Greg Canfield said.
The state's commerce department teamed with the Jackson County Economic Development Authority, city of Bridgeport, Jackson County Commission, Jackson County Legislative delegation and Bridgeport Utilities to offer job training, tax abatements and other incentives. The Tennessee Valley Authority also assisted on the project, officials said.
"Mohawk's investment will ensure that the plant - and those jobs - have a future in Jackson County for years to come," Canfield said.
Vince Perez, a project manager with the Alabama Department of Commerce, said Mohawk was in the market for a new fiber facility when Beaulieu put the Bridgeport plant up for sale. The deal allowed Mohawk to avoid a costly "greenfield" project while being able to invest in new technology and meet an internal timeline, Perez said.
Perez said Mohawk selected the Alabama location over a strong option in South Carolina.
Shepard said the deal was a major win for the county.
"It says something when you can work together as a team and pull something off like this," Shepard said. "It's going to be a huge asset for Jackson County."
Contact staff writer Ben Benton at bbenton@timesfreepress.com or 423-757-6569.