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Hanesbrands Inc.
1000 East Hanes Mill Road Winston-Salem, NC 27105 ![]() ![]() FOR IMMEDIATE RELEASE
HANESBRANDS INC. TO CEASE OPERATIONS AT ALEO SHEER HOSIERY FACILITY IN ROCKINGHAM, N.C.
Company Will Consolidate Dyeing, Packaging and Distribution Operations into Existing Larger Hosiery Facilities in Winston-Salem, N.C., and Clarksville, Ark.
WINSTON-SALEM, N.C. (Feb. 20, 2007) – Hanesbrands Inc. announced today that it will cease operations at its Aleo sheer hosiery dyeing, packaging and distribution facility in Rockingham, N.C., by the end of September 2007. The company has more production capacity than it needs to meet consumer demand for sheer hosiery.
The company will consolidate the work performed at the Aleo plant, 30 Fifth Ave., into its existing sheer hosiery dyeing, packaging and distribution operations in Winston-Salem, N.C., and into its Clarksville, Ark., sheer hosiery manufacturing plant where sheer hosiery is knit, sewn, dyed, packaged and distributed. The operations shutdown at Aleo will eliminate approximately 320 jobs. The company will provide severance benefits and career transition assistance to employees. Also, affected employees will be allowed to seek open positions at the company’s distribution center for activewear products in Laurel Hill, about 20 miles east of Rockingham. The company’s separate Rockingham storage warehouse, 206 Enterprise Drive, will not be affected by the shutdown of the Aleo facility. Approximately 10 employees work at the warehouse. “The decision to close the Aleo sheer hosiery facility was very difficult to make,” said Gerald Evans, Hanesbrands executive vice president and chief global supply chain officer. “We have a long-tenured and dedicated workforce in Rockingham. We regret that these employees will be adversely affected by the need to consolidate our operations. Production plants are large assets with fixed costs, and unfortunately, we do not need the continued production capacity of the Aleo plant on top of the capacity we already have elsewhere in order to meet consumer demand for sheer hosiery products. The decision was in no way related to the performance and abilities of our Rockingham employees. We will do everything that we can to assist these employees.” The production of L’eggs brand sheer hosiery products at the 435,000-square-foot Aleo facility will be phased out and is expected to be complete no later than September 2007. The company will seek to sell the property after the production shutdown is complete. Hanesbrands began operations at the Aleo plant in 1982. Hanesbrands Inc. Hanesbrands Inc. (NYSE:HBI) is a leading marketer of innerwear, outerwear and hosiery apparel under strong consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, men’s underwear, children’s underwear, socks, hosiery, casualwear and activewear. Hanesbrands has approximately 50,000 employees in 24 countries. More information about the company may be found on the Hanesbrands Internet Web site at http://www.hanesbrands.com. # # #
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