Hanesbrands, maker of underwear and other apparel, announced today that it is selling its yarn manufacturing business and closing a plant in Sanford that employs 150 people.
Parkdale Mills, a yarn manufacturer based in Gastonia, will buy three of Hanesbrands four yarn production plants by the end of the year. Parkdale will then provide Hanesbrands with yarn for its Western Hemisphere operations.
Hanesbrands said it is ceasing production at the Sanford plant immediately because Parkdale does not need the facility’s production.
By the end of the year Hanesbrands also will close a cotton warehouse in Advance, N.C. and a yard warehouse in Clemmons, N.C. The two facilities employ a combined 25 people.
Hanesbrands said it expects to save $100 million by outsourcing its yard production.
The company said employees affected by the closings will receive severance and some job transition assistance.
The Sanford plant is in Lee County, where the unemployment rate was 14.7 percent in July. The statewide unemployment rate was 11.1 percent in July.