US Clothing Company Consolidates Manufacturing in Honduras

On Wednesday, Delta Apparel Inc., an “international design, marketing, manufacturing, and sourcing company,” announced plans to consolidate fabric production for blank tee shirts to its facility in Honduras.

The production of some fabric for these tee shirts is currently located in a North Carolina plant, but the company will transfer it to the more cost-effective Honduras Ceiba Textiles facility. Delta Apparel expects output to grow approximately 8 percent to roughly 900,000 pounds of fabric per week, and shorten the production cycle by ten days.

Chairman and CEO Bob Humphreys says the company “can no longer justify the additional cost associated with its current level of domestic fabric production for the highly competitive blank tee shirt business.”

The movement of production to the Ceiba Textiles facility is scheduled to be completed by the end of June 2014, which will save the company approximately US$1.1 million annually once the consolidation is complete.

Source: Reuters.

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