Shaw cutting 160 jobs at Valley Head plant despite $342 million of new investments elsewhere

Rolls of carpet made by Shaw Industries line the warehouse of Carpets of Dalton.
Rolls of carpet made by Shaw Industries line the warehouse of Carpets of Dalton.

Shaw Industries is cutting nearly half the staff at its plant in Valley Head, Ala., as the Dalton, Ga.-based carpet maker continues to shift its production capacity from filmanet to staple products.

Al Scruggs, the director of human resources for Shaw's manufacturing and distribution divisions, said the company is laying off 160 employees at the Valley Head facility. The Alabama Department of Economic and Community Affairs (ADECA) and its Rapid Response Team will help employees with outplacement assistance and retraining. Shaw officials said the company is talking with employers to find opportunities for workers who don't want to transfer to other Shaw facilities, but the company overall has been adding staff in the past couple of years.

"It will take three or four weeks to go through all of the displacements and through the process of helping associates transfer to other Shaw plants, if they want to do so," Scrugg said. "So, it will be about a month before any associates are laid off, with the exception of those who may elect to take a voluntary layoff earlier."

photo Shaw Industries, Inc., is a leading manufacturer of carpets and flooring.

Shaw, the largest employer in Valley Head, will continue to employ about 195 associates at the Dekalb County, Ala., plant.

Despite the layoffs in Valley Head, haw has invested $342 million in investments over the past year and a half to grow its hardwood, resilient, carpet tile, extrusion, distribution and recycling operations in the the U.S.

"At full capacity, these expansions will create almost 1,000 jobs throughout the Southeast," Scruggs said. "As we continue to grow, we will continually adjust production to match market demands and and to leverage our investments in more advanced technology."

Upcoming Events