PGI plan to phase out operations at the Little Rock, Arkansas, USA plant by the end of March 2010, and relocate the aspects related to its hydroentanglement and fusible fibre businesses. It is hoped that these changes will increase efficiency, reduce costs and maintain high quality levels. The changes will mean upgrading the manaufacturing bases at PGI to meet market needs.
The decision by PGI to consolidate businesses is due to a lower demand for select industrial products, as well as the need to upgrade process capabilities.
PGI still operate seven plants in the US, including the Benson, North Carolina plant which is having aspects of its manufacturing operations consolidated as part of this process.
PGI have stated that when complete, the consolidation is expected to reduce manufacturing costs by US$10 million to US$11 million.
