Mike Gorey, President and CEO of Propex Operating Company, LLC, announced plans to consolidate most of the woven geotextiles produced in the Chattanooga-based firm's Nashville, Georgia plant to the Hazlehurst, Ga., production facility over the next six months. This move is in response to Propex's North American excess capacity, which is a direct result of Federal defense cuts, stimulus elimination and the industry's shift to non-woven products.
Over the past few months, Propex has reduced staffing of their Nashville facility to better align the capacity and demand for the products being produced there.
"While this activity had a positive impact on the unit cost, continued soft demand eroded the gains realized by that temporary action," said Mr. Gorey. " The economic indicators tell us that it is prudent to consolidate our manufacturing operations into one location at this time as our current global footprint provides more than enough capacity to service the stabilization and woven GEO marketplace. Our strategic business model shifts our focus to be the world wide solutions provider in growing markets, and therefore the Nashville facility will be closed.
"This decision is not a reflection on the work force in Nashville. It is instead the reflection of an aggressive marketplace driving pricing pressure from domestic and imported competitors."
In addition to these changes, Propex announced it will be investing in an expansion of theHazelhurst facility to produce their innovative new product Isis for the modular carpet tile market.
Officials said, "Answering the demand for a sustainable polyester solution in woven carpet backing is a new and exciting part of the Propex future and demonstrates their ability to recognize opportunity and position themselves to successfully capture it. This consolidation is expected to result in a net increase in employment in Georgia once the new Isis® polyester production capacity comes on line in Hazlehurst later this year."