North Georgia: Shaw closing Ringgold plant, cuts 430 jobs

North Georgia: Shaw closing Ringgold plant, cuts 430 jobs

September 8th, 2009 by Andy Johns in Local - Breaking News

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PDF: Shaw news release

Shaw Industries announced today it will close a yarn plant in Ringgold, Ga., cutting 430 jobs.

In a release sent out earlier today the company said it will close Plant DX "in the coming weeks."

"Shaw will give the affected employees preference for existing and future openings at other company plants and over time expects to rehire a significant number," the release states.

Declining demand due to the housing slump is the cause for the closure, according to the release.

For the time being, Shaw will operate using spun yarn from plants in Valley Head, Ala., as well as Tifton and Chatsworth, Ga., according to Shaw spokesman Al Scruggs.

"It's not something we want to do," Mr. Scruggs said.

Shaw closed a spinning mill in Stevenson, Ala., in June 2008, followed by a similar mill in Trenton in November. In March, Shaw closed a plant in Calhoun for a total of 1,710 jobs lost in the Tri-State area.

Shaw also closed a plant in Valdosta, Ga., in March.

When the company closed the Calhoun plant, which also produced spun yarn, one industry analyst said the move was not surprising and called the process an outdated technology.

For complete details, see tomorrow's Times Free Press.