Supply Chain News Bites - Only from SCDigest
 

-April 4, 2007

 
 

Manufacturing News: Hanesbrands, Hoover Vacuum, to move U.S. Factories Offshore to Reduce Supply Chain Costs

 
 

Work Going to Central America and Mexican plants, not China

 
 

SCDigest Editorial Staff

 
 

After being sold by their parent companies, two manufacturers are making moves to reduce supply chain costs and push more production work to lower cost countries.

Hanesbrands, the underwear and casual apparel maker spun off from Sara Lee last September, announced it will close a factory in Winston-Salem, NC, idling about 600 employees. The production will move to Central America and the Caribbean, where there are a number of existing company operations. After the spinoff, Hanesbrands had previously closed other U.S. facilities and consolidated distribution centers.

The latest move was especially tough, however, as Hanesbrands is headquartered in Winston-Salem.

Meanwhile, Techtronic, which acquired the Hoover Vacuum brand from Whirlpool stemming from Whirlpool’s acquisition of Maytag, announced it was closing equipment production in a Hoover factory near Canton, OH and moving the work to El Paso, TX and Juarez, Mexico. Techtronic will keep a distribution center in Ohio.

 
     
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