Collins & Aikman Strengthens North American Accessory Floor Mat Operations
22 September 1999
Collins & Aikman Strengthens North American Accessory Floor Mat Operations
TROY, Mich., Sept. 21 -- Collins & Aikman today
announced the details of a comprehensive plan designed to strengthen the
Company's North American accessory floor mat operations. The actions are
expected to result in further improvement in "Just-In-Time" delivery of
accessory floor mats to customers, lower transportation costs, reduced
inventory levels and the elimination of rehandling and other expenses. In
addition to improved customer service levels, the Company anticipates annual
savings from this program in excess of three million dollars.
The plan initially encompasses three phases; 1) the expansion of the
Company's Holmesville, Ohio operations, 2) the installation of additional
accessory floor mat capacity at Collins & Aikman's Springfield, Tennessee
facility and 3) the expansion and installation of additional equipment at the
Company's Albemarle, North Carolina operations. The project is anticipated
to be completed by March, 2000.
Commenting on the plan, Dennis Hiller, President of North American
Automotive Interior Systems stated, "The re-engineering of Collins & Aikman's
North American accessory mat operations will enable us to provide our
customers with the industry's highest quality accessory floor mats on a truly
Just-in-Time basis."
The expansion at Holmesville will enable Collins & Aikman to ship product
directly from that facility. Previously, the Holmesville plant was dependent
on other shipping facilities. The additional capacity for the Springfield
plant is intended to support the continued growth in Collins & Aikman's
accessory floor mat business. This expansion is being accomplished without
brick and mortar, and according to Hiller, "is a true testament to the synergy
between our Acoustics and Accessory businesses and is a synergy that is only
now possible since we are organized as an integrated interior systems
operator." The installation of carpet blank cutting equipment at Albemarle is
intended to significantly improve material processing, as Albemarle will be
able to reduce inventory levels and supply other Collins & Aikman facilities
with products quicker, with less material handling and lower freight costs.
Hiller continued, "In addition to significantly enhancing manufacturing
flow, we anticipate this plan will result in even better product quality,
elimination of material handling expenses and substantially improved inventory
turns and accuracy. As the global leader in automotive carpet and acoustic
systems, these actions should further strengthen our ability to serve our
global customers."
Collins & Aikman is the global leader in floor and acoustic systems and is
a leading supplier of automotive fabric, interior plastics trim and
convertible top systems. The Company's operations span the globe through
65 facilities, 12 countries and more than 16,000 employees who are committed
to achieving total excellence. Collins & Aikman's high-quality products
combine industry-leading design and styling capabilities, superior
manufacturing capabilities and the industry's most effect NVH "quiet"
technologies.