Hanesbrands Closing Three Plants In Dominican Republic, 1,400 To Lose Jobs

Apparel company consolidating operations to its larger plants to cut costs and remain competitive.

WINSTON-SALEM, N.C. - Hanesbrands Inc., an apparel manufacturer, announced Thursday that it is closing three sewing and assembly operations in Itabo, Dominican Republic, resulting in the loss of 1,400 jobs.

According to the company, it is consolidating sewing production into fewer facilities, allowing it to operate larger manufacturing plants that will be more cost productive and competitive.

Production at the Itabo facilities will end by September 2007 and 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.

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 apparel assembly operations in the Dominican Republic.

Since its spin-off as an independent company in September 2006, Hanesbrands has announced 10 manufacturing facility closings in the Dominican Republic, Mexico, Puerto Rico, and the U.S.

Hanesbrands has about 50,000 employees in 24 countries.