Repreve manufacturer Unifi confirms sale of North Carolina facility

Unifi, the manufacturer of recycled fibre brand Repreve, has announced the sale of its manufacturing facility in Madison, North Carolina. The deal, made with an unnamed third-party, was valued at 45 million dollars.

Unifi said 25 million dollars of net proceeds from the sale would be used to reduce an existing loan, while 18.3 million dollars will go towards reducing outstanding revolving loans.

In a release, Unifi’s chief executive officer, Eddie Ingle, said the closure of the facility, and the subsequent “exit of yarn manufacturing at that site”, comes as part of efforts to improve the profitability of its Americas business.

Alongside enhancing its overall financial position, Ingle said “the relocation of the production capacity from the Madison facility to other locations in North and Central America will dramatically optimise our business and make Unifi a leaner organisation”.

Unifi said that it further expects to realise over 20 million dollars in annualised operating cost savings once all transition and restructuring activities are completed.

The company will continue to operate from its existing plants in Reidsville, where it processes recycled PET plastic into dyeing yarns, and Yadkinville, which processes plastic chips into Repreve yarn. It also currently has factories in Colombia, El Salvador and Brazil, as well as sales offices based globally.