Hanesbrands Inc.
1000 East Hanes Mill Road
Winston-Salem, NC 27105
(336) 519-4400
FOR IMMEDIATE RELEASE
1000 East Hanes Mill Road
Winston-Salem, NC 27105
(336) 519-4400
FOR IMMEDIATE RELEASE
| News Media, contact: | Matt Hall, (336) 519-3386 |
| Analysts and Investors, contact: | Brian Lantz, (336) 519-7130 |
HANESBRANDS INC. TO CEASE OPERATIONS AT THREE SEWING FACILITIES IN THE DOMINICAN REPUBLIC TO REDUCE COSTS AND IMPROVE COMPETITIVENESS
Consolidation of facilities is part of the company’s global manufacturing supply chain strategy of operating fewer plants more efficiently in lower-cost countries
Consolidation of facilities is part of the company’s global manufacturing supply chain strategy of operating fewer plants more efficiently in lower-cost countries
Winston-Salem, N.C. (May 3, 2007) – Hanesbrands Inc. announced today that it will cease production at three sewing and assembly operations located in Itabo, Dominican Republic. The company is consolidating sewing production into fewer facilities that are aligned with textile fabric production and can operate more efficiently as larger operations.
Production in Itabo will cease by September 2007 and will result in a reduction of approximately 1,400 jobs. All affected employees will receive severance payments.
Hanesbrands expects to take restructuring and related charges of approximately $3 million for the closures, including severance, lease exit costs and accelerated depreciation of fixed assets.
“We are fully engaged in our global supply chain strategy of doing business around the world in lower-cost countries,” said Gerald Evans, Hanesbrands executive vice president and chief global supply chain officer. “We continually review how to remain most competitive in every country and region around the world in which we operate, particularly as we begin to add operations in Asia to balance our supply chain in the Western Hemisphere. A key opportunity for us is to operate fewer facilities that are larger in order to most effectively utilize our assets. We regret the loss of jobs for our employees in Itabo. This was a difficult decision driven by competitive business needs and a compelling opportunity to take advantage of cost reduction.”
In the past two years, Hanesbrands has added newer, lower-cost textile production in the Dominican Republic and Central America and is aligning its sewing operations around those fabric production centers.
In addition to the sewing operations in Itabo and the new Dos Rios textile manufacturing plant in Bonao, Hanesbrands has six other sewing and intimate apparel assembly operations in the Dominican Republic.
Since its spinoff as an independent company in September 2006, Hanesbrands has announced 10 manufacturing facility closings in the Dominican Republic, Mexico, Puerto Rico, and the United States.
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, casual wear and active wear. Hanesbrands has approximately 50,000 employees in 24 countries. More information about Hanesbrands Inc. may be found on the internet at http://www.hanesbrands.com.
Cautionary Statement Concerning Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements, including those regarding the benefits expected from facility closures, our long-term goals, and trends associated with our business. These forward-looking statements are made only as of the date of this press release and are based on our current intent, beliefs, plans and expectations. They involve risks and uncertainties that could cause actual future results, performance or developments to differ materially from those described in or implied by such forward-looking statements. These risks and uncertainties include the following: our ability to migrate our production and manufacturing operations to lower-cost countries around the world; our ability to effectively implement other components of our business strategy; costs and adverse publicity from violations of labor or environmental laws by us or our suppliers; our ability to successfully manage adverse changes in social, political, economic, legal and other conditions affecting our foreign operations; retailer consolidation and other changes in the apparel essentials industry; our ability to keep pace with changing consumer preferences; loss of or reduction in sales to, or financial difficulties experienced by, any of our top customers; fluctuations in the price or availability of cotton or labor; our substantial debt and debt-service requirements that restrict our operating and financial flexibility and impose significant interest and financing costs; and other risks identified from time to time in our 2006 Annual Report on Form 10-K, 2006 Transitional Report on Form 10-KT, press releases and other communications. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
Production in Itabo will cease by September 2007 and will result in a reduction of approximately 1,400 jobs. All affected employees will receive severance payments.
Hanesbrands expects to take restructuring and related charges of approximately $3 million for the closures, including severance, lease exit costs and accelerated depreciation of fixed assets.
“We are fully engaged in our global supply chain strategy of doing business around the world in lower-cost countries,” said Gerald Evans, Hanesbrands executive vice president and chief global supply chain officer. “We continually review how to remain most competitive in every country and region around the world in which we operate, particularly as we begin to add operations in Asia to balance our supply chain in the Western Hemisphere. A key opportunity for us is to operate fewer facilities that are larger in order to most effectively utilize our assets. We regret the loss of jobs for our employees in Itabo. This was a difficult decision driven by competitive business needs and a compelling opportunity to take advantage of cost reduction.”
In the past two years, Hanesbrands has added newer, lower-cost textile production in the Dominican Republic and Central America and is aligning its sewing operations around those fabric production centers.
In addition to the sewing operations in Itabo and the new Dos Rios textile manufacturing plant in Bonao, Hanesbrands has six other sewing and intimate apparel assembly operations in the Dominican Republic.
Since its spinoff as an independent company in September 2006, Hanesbrands has announced 10 manufacturing facility closings in the Dominican Republic, Mexico, Puerto Rico, and the United States.
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, casual wear and active wear. Hanesbrands has approximately 50,000 employees in 24 countries. More information about Hanesbrands Inc. may be found on the internet at http://www.hanesbrands.com.
Cautionary Statement Concerning Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements, including those regarding the benefits expected from facility closures, our long-term goals, and trends associated with our business. These forward-looking statements are made only as of the date of this press release and are based on our current intent, beliefs, plans and expectations. They involve risks and uncertainties that could cause actual future results, performance or developments to differ materially from those described in or implied by such forward-looking statements. These risks and uncertainties include the following: our ability to migrate our production and manufacturing operations to lower-cost countries around the world; our ability to effectively implement other components of our business strategy; costs and adverse publicity from violations of labor or environmental laws by us or our suppliers; our ability to successfully manage adverse changes in social, political, economic, legal and other conditions affecting our foreign operations; retailer consolidation and other changes in the apparel essentials industry; our ability to keep pace with changing consumer preferences; loss of or reduction in sales to, or financial difficulties experienced by, any of our top customers; fluctuations in the price or availability of cotton or labor; our substantial debt and debt-service requirements that restrict our operating and financial flexibility and impose significant interest and financing costs; and other risks identified from time to time in our 2006 Annual Report on Form 10-K, 2006 Transitional Report on Form 10-KT, press releases and other communications. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
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