Published: January 06, 2010 07:38 pm      

Plant closing in Eton part of "consolidation strategy," Mohawk says

190 affected

ETON — 2009 wasn’t a banner year for the floorcovering industry, as the mounting recession forced several companies to close plants and lay off thousands of workers.

So far, 2010 hasn’t been much better.

Officials with Mohawk Industries said Wednesday the company is closing a carpet tufting plant in Eton, resulting in about 190 layoffs. The plant is at 4140 Highway 411 North. Calhoun-based Mohawk Industries is the world’s largest floorcovering company.

In a press release sent out late Wednesday afternoon, Mohawk officials said the plant closing is part of a “consolidation strategy” that will merge the Eton facility with one in Dalton. The company expects “many” of those laid off employees to be “reassigned over the next 90 days.”

Tufting equipment from Eton will be relocated to Mohawk’s manufacturing facility on Antioch Road in Dalton.

“As that relocation is phased in, as many Eton tufting employees as possible will be offered placement at that location,” the press release said. “The reallocation of operations will be staggered, beginning the first week of January, and will be completed by March 7, 2010.”

Jerry Hendrix, Mohawk senior director of human resources, did not immediately return a phone call Wednesday. A guard on property at the Eton plant prevented a reporter from entering the plant area.

In the press release, Hendrix said the consolidation was caused by the changing business environment.

“The operational restructuring is driven by needs to more efficiently deliver goods for our customers in a very competitive market,” Hendrix said. “It has nothing to do with the quality of the work force. These men and women at Eton have done outstanding work. We appreciate their dedication and commitment to our customers.”

In a three-paragraph letter dated Wednesday sent to Murray County sole commissioner David Ridley, Hendrix notified the county of the company’s plans. Ridley said word of the shutdown was “just very, very disturbing news. It’s sad for our community. Mohawk has been good for our community for many, many years.” He added, “We’re fighting and clawing everyday to retain jobs in Murray County.”

The floorcovering industry has been hit hard by the slowdown in the housing industry as new home construction has dipped, while concerns about the economy have made some homeowners hesitant to remodel. The industry continues to react to a consumer shift from carpet to hard surface products such as hardwood and tile. Companies have also streamlined their operations, while advances in technology have made manufacturing processes more efficient.

Last year, Mohawk laid off 400 workers at a plant in Dublin and 120 employees at a plant in Waynesboro, Va.

Mohawk isn’t the only company that has laid off workers. Last year, Dalton-based Shaw Industries notified the Department of Labor of the company’s plans to cut about 1,000 workers. In December, Catoosa County commissioners approved an incentives package to keep a Shaw laminate plant open in Ringgold. Ralph Boe, president and CEO of Beaulieu of America, said that company’s work force has not been reduced, other than through normal attrition, in the past year.

The Mohawk plant being closed is adjoined by an extrusion facility and near two Shaw Industries plants and a Beaulieu of America facility. A Mohawk plant sits just south of Eton on Highway 411. On Duvall Road, a cut-through that connects Highways 411 and 52, there are three Mohawk facilities among the large and family-owned businesses.

Murray County resident Frank Austin said he wasn’t surprised to hear about the closing in Eton.

“You hear all kinds of rumors about this place closing or that place closing, you get used to it,” Austin said. “I don’t know how much this place can take.”



Reporter Rachel Brown contributed to this report.