SHAW INDUSTRIES TO EXIT RUG BUSINESS;
CONVERTING PLANT TO LUXURY VINYL TILE

DALTON, GA. --Shaw Industries has announced that it is exiting the rug business and will convert the current Ringgold, Ga. rug facility into a new state-of-the-art luxury vinyl tile (LVT) manufacturing facility.

“The economics of the rug business today simply do not allow for future growth or encourage further investment,” according to Vance Bell, chairman and CEO of Shaw Industries.

“We have been intentional about exiting this business at a time when more opportunities exist for our associates.”

The move affects all segments of the rug business, including room size rugs, scatters, throws and bath rugs, according to Jim Curtin, vice president of sales for Shaw Living.

The Shaw Living Atlanta showroom, 6-A-2, will be open during the Atlanta Winter Market, Jan. 8 to 11, 2014, Curtin noted. "We have inventory and yarn that needs to be moved."  Shaw Living will also participate in the Las Vegas Market.

The closure impacts all Shaw Living rugs manufactured in Ringgold, Georgia. Cut and Bound rugs offered through Tuftex and other Shaw divisions will not be impacted, according to a Shaw corporate spokesperson. 

Explaining how the company reached the decision to close the division, the spokesperson said,

"The current structure and economics of the category are not favorable to continued investment due to global competition, tremendous fragmentation in product offerings, and a concentrated retail channel. Rugs is a small business for Shaw, only 2 percent of our total consolidated revenue. We are choosing to diversify in areas where we see more growth, opportunity, and better economics."

According to the company, Shaw constantly evaluates the viability of its areas of business. "We wanted to exit at a point where there would be more opportunities available for our people. The recovery of the overall flooring market in 2013 has created opportunities within the Northwest Georgia area. The majority of the associates impacted will have opportunities at other locations within the company if they are interested in staying. "

The vast majority of the 400 associates employed by the Shaw Living Rug Division will have opportunities at other locations in the company. Customers will be serviced through a transition period, according to the Shaw corporate news release.

"LVT is the fastest growing category in the flooring market today. Shaw has been participating in this market for three years, but up until this point has not manufactured LVT. In repurposing the current facility to a new LVT manufacturing site, Shaw will be able to shorten the timeframe to begin manufacturing the product, utilize an existing facility, and keep jobs in the Ringgold area," teh company said.

“We will continue to invest in businesses where we see future growth and opportunities,” continued Bell. “Over the past few years, we have developed a significant business and market-leading position in the LVT flooring category. This new facility will provide domestic manufacturing for a portion of our product line, allowing us to further enhance our product development, service, and overall customer satisfaction.”

Shaw plans to invest over $100 million in its new LVT manufacturing facility and when complete, the investment is expected to generate 200 new jobs in the Ringgold, Ga. area. This investment follows $250 million in other recent expansion announcements by Shaw in carpet tile, hardwood flooring, yarn extrusion, and distribution.

 01.6.14