Tietex Commits to U.S. Market with Purchase of 300,000 Sq. Ft. Plant
June 9, 2005
HIGH POINT, North Carolina — Tietex Interiors (TI) has announced an investment in the future of its aggressive domestic (U.S.) strategy with the addition of a 300,000 square foot manufacturing plant in Matkins, North Carolina.
The plant was previously owned by International Textile Group (ITG is a consolidation of Burlington Industries and Cone Mills).
According to Mike Durham, TI president, 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. Tietex's decision to expand its resources is the foundation of their corporate positioning strategy. "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," said Reed Cunningham, president and COO of TI parent Tietex International.
"Our commitment to the future of U.S. upholstery production 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."
Of his the competition coming from Asia—that has already wounded several businesses—Durham has decided to be proactive, and find opportunity in their flaws.
"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, said Durham.
"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.
Tietex International is a principal manufacturer and supplier of fabrics within three operating divisions: Interiors, Ticking, and Technical. The company, which was founded in 1974, has operations in the U.S., Mexico, Thailand and Australia.
The plant was previously owned by International Textile Group (ITG is a consolidation of Burlington Industries and Cone Mills).
According to Mike Durham, TI president, 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. Tietex's decision to expand its resources is the foundation of their corporate positioning strategy. "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," said Reed Cunningham, president and COO of TI parent Tietex International.
"Our commitment to the future of U.S. upholstery production 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."
Of his the competition coming from Asia—that has already wounded several businesses—Durham has decided to be proactive, and find opportunity in their flaws.
"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, said Durham.
"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.
Tietex International is a principal manufacturer and supplier of fabrics within three operating divisions: Interiors, Ticking, and Technical. The company, which was founded in 1974, has operations in the U.S., Mexico, Thailand and Australia.
