By SCBIZ Staff

DILLON. -- Unifi Inc. today announced it will be shutting its recently acquired Dillon facility. The company currently operates 42 texturing machines at the facility. Unifi expects to close the facility by July 31 and move the entire production to its facility in Yadkinville, N.C.

Unifi acquired the Dillon facility Jan. 1 for about $65.2 million.

"The closure of the Dillon, S.C., facility is consistent with our strategy of making key acquisitions and addressing excess capacity to lower our manufacturing costs,” said Bill Lowe, chief operating officer and chief financial officer for Unifi. “Our largest facility in Yadkinville of over 800,000 square feet has both the footprint and equipment to accommodate the volume currently run in South Carolina. We continue to streamline our product mix and look to maximize our facility utilization rates to lower manufacturing costs to compete in the marketplace.”

The South Carolina facility has about 355 employees. Unifi estimates it will add about 120 employees to its Yadkinville facility to accommodate the additional volume. Cash closure costs, including severance and equipment moves, is expected to be about $2.1 million with annual savings of about $5 million.

Unifi is a producer and processor of multi-filament polyester and nylon textured yarns and related raw materials.