Auto fabric supplier Collins & Aikman Corporation announced that it would discontinue production at its yarn dyeing facility in Lowell, Massachusetts. Operations are expected to continue through the first quarter of 2006.
Following careful and in-depth evaluation, the Company has strategically elected to exit the business that is currently conducted at its Lowell operations as part of ongoing efforts to improve operating performance. Production will be transferred gradually to the company's existing supply base.
"Company regret the impact these tough decisions will have on employees and the local community. Company do not take these decisions lightly and would not be proceeding if these steps were not essential to restoring Collins & Aikman's financial health," said Frank Macher, Collins & Aikman's President and CEO.
The Company is currently evaluating all of its operations and implementing a number of cost reduction and efficiency improvement initiatives aimed at creating a viable entity that could successfully emerge from bankruptcy.
Company officials met earlier with employees and have contacted customers and local officials to announce the planned closure. The Western Avenue Dyers factory has approximately 150 employees. The facility was acquired from Joan Automotive Fabrics in September of 2001.
Collins & Aikman Corporation is a leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company is headquartered in Troy, Michigan.
Collins & Aikman Corporation
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