June 2005

TIETEX INTERIORS BUYS 300,000 SQ. FT. MANUFACTURING PLANT.

Move Signals Commitment To Broadened Domestic Strategy.

HIGH POINT, NC -- As a number of U. S. fabric manufacturers turn increasingly to Asia for economic salvation, Tietex Interiors (TI) has announced a significant investment in the future of an aggressive domestic strategy.

Mike Durham, TI president, said his company has purchased a major manufacturing plant owned by International Textile Group ( ITG is a consolidation of Burlington Industries and Cone Mills ). Located in Matkins, N. C., the facility includes textile equipment and 40 acres of property. "While other companies are scaling back in favor of off-shore sourcing, we're taking this step because we believe a domestic strategy has a number of compelling advantages.

"Essentially, what this investment means is that we're bullish on the significant role Tietex will continue to play for many customers who are not commodity-driven, and others who care about design, fashion, speed-to-market and the true benefits of lean manufacturing," Durham said.
   
Commenting on the purchase, Michael Ambler, ITG's executive vice president of manufacturing, said that Tietex is a valued supplier and customer. "We're very pleased that this operation will be an integral part of their strategy and the community going forward."

The decision to expand domestic resources signals a broad corporate positioning strategy, said Reed Cunningham, president and COO of TI parent Tietex International. "Our clear intention with this initiative is to grow our status and stature as a total fabric resource – that is, to take advantage of our flexibility and diversity as a global player," he said.

"Our commitment to the future of U.S. upholstery production," he added, "in no way diminishes our investment in upholstery worldwide. We're expanding certain manufacturing capacity in Asia; we have a planned distribution investment in Europe; and we are continuing and strengthening a number of other international alliances."

Durham noted further that continued domestic strength would keep his company "nimble," prepared and able to react to customer needs. "Being brutally honest, everybody in this business acknowledges the raw pricing advantages out of Asia. But then you have to weigh the downside: buying nothing less than containers, tying up working capital with large inventories, product obsolescence, long lead times, lack of custom-tailored goods and overall logistics, not to mention the perils associated with copyright and intellectual property issues.

"In the final analysis, we believe domestic textiles has a key role in the marketplace. Even so, we aren't about to put our heads in the sand with a linear approach to business. We long ago adopted a blended fabric strategy and our intention now is to strengthen it even further," he said.

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