Shaw Industries' Valley Head, Ala., plant will shutter its doors by July, idling 183 workers in the small DeKalb County town about 40 miles south of Chattanooga.
DeKalb County Economic Development Authority executive director Jimmy Durham said Wednesday that plant officials met with city and county officials earlier this week on the closure.
The plan to shutter Shaw Plant 14 was no surprise, said Durham.
"About a year-and-a-half ago they terminated 160 in a reduction-of -force move," Durham said Wednesday. "We saw this coming."
When Shaw asked to meet with local officials, Durham suspected why.
Durham said the Valley Head plant made a type of yarn the industry doesn't use much anymore.
"They made what they called 'spun' yarn here," Durham said. "Most yarn is filament and that was one of the reasons for closing this plant."
Durham said the development authorities will work with displaced Shaw workers and in the future hold some job fairs to help those who need assistance finding new jobs.
Some workers might be able to go to work at Shaw's plant in Adairsville, Ga., Durham said.
Shaw officials issued a statement on the closure on Tuesday.
"We want to thank the associates of Plant 14 for their years of service and passion to supply our customers with exceptional quality products," said Al Scruggs, director of human resources for Shaw's manufacturing and distribution divisions.
"As we engage in the consolidation process, jobs will be available at other Shaw facilities," Scruggs said. "Shaw's human resources team will assist associates with internal job opportunities and provide out-placement options."
Last June, Shaw announced staff cuts at the Valley Head plant that reduced jobs almost by half when the Dalton, Ga.-based carpet maker shifted its production capacity from filament to staple products.
While cutting its spun yarn operations for carpet, Shaw is investing heavily in making hard surfaces. Shaw officials said this week the company "has committed $600 million in capital investments" to enhance those same operations, which are expected to eventually create nearly 1,000 jobs across the Southeast.
Meanwhile, Durham said county officials will start working to find a new tenant for the facility that comprises around 300,000 square feet of manufacturing space. At its height, the Shaw plant employed between 340 and 350 people at the plant, he said.
Contact staff writer Ben Benton at bbenton@timesfreepress.com or twitter.com/BenBenton or www.facebook.com/ben.benton1 or 423-757-6569.