Unifi Sells Yarn Manufacturing Facility to Boost Profitability and Streamline Operations

Unifi, a North Carolina-based textile company, has announced the sale of its yarn manufacturing facility in Madison for $45 million. The move is expected to result in over $20 million in annual operating cost savings and reflects the company’s strategy to enhance profitability and streamline its operations across the Americas.

Financial Improvements Following the Sale

Eddie Ingle, CEO of Unifi, emphasized the significance of this transaction during an announcement regarding the sale. “The sale of our Madison facility and related exit of yarn manufacturing at that site marks a significant step in transitioning our Americas business to improved profitability,” he stated. The sale not only helps reduce the company’s debt but also strengthens its overall financial health.

The transition will involve relocating production capacity from the Madison site to other existing facilities in North and Central America. This strategic realignment aims to optimize operations and make Unifi more efficient as an organization.

Focus on Sustainability and Innovation

Unifi is recognized for its commitment to sustainability, utilizing proprietary recycling technology to convert post-industrial and post-consumer waste into sustainable textiles. Through its Repreve brand, which offers traceable and recycled fibers and resins, Unifi is reshaping how industries approach material use and waste management.

As a vertically-integrated manufacturer, Unifi operates directly in several countries including the United States, Colombia, El Salvador, and Brazil. This broad operational footprint allows the company to leverage diverse markets while focusing on innovative and sustainable practices.

The decision to divest the Madison facility aligns with current trends in the fiber and textile industry, where businesses are increasingly prioritizing sustainability alongside profitability.

Looking Ahead

With the completion of the transition and restructuring processes, Unifi anticipates significant operational efficiencies. The company aims to create a leaner organizational structure, ultimately reaping the benefits of reduced costs and increased profitability.

Unifi’s actions reflect a larger shift in the textile industry, as companies explore ways to innovate and adapt in response to market demands for sustainability and efficiency. By focusing on these areas, Unifi is positioning itself to not only remain competitive but to lead in responsible manufacturing practices.

For more information about Unifi’s initiatives and products, visit their official website at www.unifi.com.