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Thursday 02nd of October 2008 05:39:52 PM

Hanesbrands has made a public announcement the company is planning on closing 9 plants and laying off 8,100 workers. The plants are located in 5 different countries. Hanesbrands, Inc. is a USA company that specializes in the manufacturing and sales of t-shirts, socks, underwear, bras and other related items. The brands that come under the Hanesbrands umbrella include popular brands like Hanes, Playtex and Bali.

The purpose of the plant closings is to relocate production to countries with lower labour costs. The plant closings will occur primarily in the USA and Central America and the new plants will be opened in Asia. Other countries affected include El Salvador, Honduras, Costa Rica, and Mexico. Once the moves are completed, the knit-textile operations will no longer exist in the United States. The CEO Richard A. Noll was quoted as saying, "Globalizing our supply chain, and eventually balancing production between Asia and the Western Hemisphere, is a critical plank in our strategic efforts to reduce costs, improve product flow and increase our competitiveness."

Company President Gerald Evans continued to say, "In addition to improving cost competitiveness, these moves will lay the foundation for completing our Asia build out and improve the alignment of our sewing operations with our end-state flow of textiles. We regret that employees will be affected by this production streamlining, but our supply chain globalisation is necessary to strengthen our overall company and keep us competitive around the world."

The plans are to move the textile productions into the plants remaining open in Central America. The Central American sewing plants that are closing will have operations moved to Asian plants in Vietnam and Thailand. After the plant shifting is complete, there will be an additional 6,000 Asian plan workers.

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