Posted July 18, 2017

 

HUNTERSVILLE, N.C. – DuraFiber Technologies, a leading global supplier of high-tenacity polyester fibers, engineered fabrics, sewing threads and advanced materials, announced that it has taken the next steps to prepare its production facilities to be idled if a buyer is not identified by September 11.

 

Affected facilities are located in Salisbury, N.C. and Shelby, N.C. – both Polyester Industrial Filament (PIF) plants – and Winnsboro, S.C., a tire cord conversion plant.

 

These actions follow a series of initiatives to lower production costs in response to increased competition in the textile industry, as well as a thorough review of strategic alternatives, including potential asset sales. 

 

DuraFiber's international operations in France, Germany and Mexico are unaffected by this announcement and will continue to operate as usual. 

 

"While today's announcement is a difficult one to make, increased labor, energy, transportation and raw material costs – in addition to continued market pressures – have strained DuraFiber's finances to a point that is no longer sustainable,” said CEO Frank Papa. “Our team will work diligently to ensure a smooth transition for our employees, customers and suppliers during the next 60 days, even as we continue to pursue strategic alternatives to keep these plants open."

 

DuraFiber employs approximately 800 workers at its three U.S. plants and 1,800 employees globally.

 

A concern “is the impact on Berry Amendment supply, as DuraFiber is the only PIF producer in the U.S.,” reported Alasdair Carmichael of PCI Wood Mackenzie, in an announcement sent to subscribers to the Synthetic Yarn and Fabrics Association’s News Update newsletter. “When the military and homeland services need to source product with PIF above a certain cost, the only supplier is currently DuraFibers. Without an alternate U.S. supplier, it will open the sourcing to products made from any PIF company in the world that negotiates a Berry Amendment waiver.”

 

Sources: DuraFiber Technologies and eTC reports

DuraFiber Technologies to idle U.S. plants if buyer isn’t found