Local News

January 6, 2014

Shaw Industries to exit area rug business

To convert Ringgold facility, create 200 jobs

Shaw Industries announced today that it is exiting the area rug business and will convert the current Ringgold rug facility into a new state-of-the-art luxury vinyl tile (LVT) manufacturing facility.

“The economics of the rug business today simply do not allow for future growth or encourage further investment,” said Vance Bell, chairman and CEO. “We have been intentional about exiting this business at a time when more opportunities exist for our associates.”

The vast majority of the 400 associates employed by the Shaw Living Rug Division will have opportunities at other locations in the company. Customers will be serviced through a transition period.

LVT is the fastest growing category in the flooring market today. Shaw has been participating in this market for three years, but up until this point has not manufactured LVT. In repurposing the current facility to a new LVT manufacturing site, Shaw will be able to shorten the timeframe to begin manufacturing the product, utilize an existing facility and keep jobs in the Ringgold area.

“We will continue to invest in businesses where we see future growth and opportunities,” continued Bell. “Over the past few years, we have developed a significant business and market-leading position in the LVT flooring category. This new facility will provide domestic manufacturing for a portion of our product line, allowing us to further enhance our product development, service and overall customer satisfaction.”

Shaw plans to invest more than $100 million in its new LVT manufacturing facility and when complete, the investment is expected to generate 200 new jobs in the Ringgold area. This investment follows $250 million in other recent expansion announcements by Shaw in carpet tile, hardwood flooring, yarn extrusion and distribution.

About Shaw

The world’s largest carpet manufacturer and a leading floorcovering provider, Shaw Industries Group Inc. is a vertically integrated manufacturer that supplies carpet, hardwood, laminate, resilient, tile and stone flooring products and synthetic turf to residential and commercial markets worldwide. A wholly owned subsidiary of Berkshire Hathaway Inc. with more than $4.5 billion in annual sales and 23,000 associates, Shaw is headquartered in Dalton with salespeople and/or offices located throughout the US, as well as Australia, Canada, China, Mexico, Singapore and the United Kingdom. For more information, visit http://shawfloors.com/about-shaw.

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