— Eugene textile manufacturer Eugene’s textile center is “not a business” and “is not profitable,” the company’s president said Friday.
The company said it will sell the business in September 2018 and is focusing on growing its manufacturing footprint in Asia and Europe.
Eugene’s chief executive, David Kavanagh, said the company had about 20 employees in the Eugene textile plant and that it has about 40 employees in China and Mexico.
“Our manufacturing and supply chain are all in China, but it is not profitable in the sense that we can’t make products for consumers in China,” he said.
“We are not in China but it’s a business.
It is not a good business model.”
Kavanaghi, who took over as Eugene’s president last year, said he expects to bring in more than $100 million in revenue over the next two years.
Eugene is one of several textile manufacturers in the state and a key textile export market.
Kavanagerhi said Eugene is not in a position to compete directly with other mills and that the company is focusing more on expanding into China, where it has more than 5,000 employees.
He said the Eugene factory would be able to increase production and expand its presence in the United States, which it has done with its Oregon-based subsidiary, The Oregon Textile Company.
“It’s a big opportunity for us and we’re excited to be able, for the first time, be in a situation where we can actually be a full-fledged supplier,” Kavanagarhi said.
The Oregon-made apparel is also a staple in the region, with the company producing clothing for the likes of Macy’s and American Eagle Outfitters.
The Eugene plant, which is owned by the company that manufactures the Nike Air Jordan sneakers, is also part of a chain that includes Eugene, Portland, Bend, and Springfield.
The textile plant has about 2,000 workers and employs about 1,200 people.
Eugene textile workers union president Don Wirth said that the textile plant will likely shut down soon because it is too big to be viable without the company.
“They have an operating surplus of some $200 million,” Wirth told The Associated Press.
“That’s the biggest surplus we’ve ever had in Eugene.
They can’t run on that.
That’s not going to be sustainable.”
The Eugene textile company has faced a number of challenges since Kavanagy took over in September 2016.
The plant has been hit by an outbreak of the H1N1 influenza virus that killed an estimated 50 people and caused thousands of other illnesses, but the plant’s workers are not working.
The factory also lost nearly all of its employees after the company announced in April 2018 that it would close the plant.
In June 2018, the company said that it was facing layoffs and was negotiating with unions to keep the jobs.
The union has continued to press for higher wages and benefits, but Kavanaga said the factories contract with the Eugene union expired in June 2018.
Wirth criticized Eugene’s union for not reaching out to the company before announcing layoffs.
“The union should have reached out and asked Eugene what was going on with the plant, and they should have told them,” Wertin said.
Eugene, which has about 300,000 residents, was one of the fastest growing cities in Oregon before the pandemic.
It has added thousands of jobs and increased its gross domestic product to more than 20% of the state.
Eugene also became the second largest city in Oregon in 2016, moving from ninth to fifth, according to the Census Bureau.
Kavaghi said the textile manufacturing plant in Eugene was a “truly incredible opportunity.”
Eugene textile manufacturing is one part of the Eugene-based company’s international operations.
Eugene has more U.S. textile production than the other six textile plants in the U.M.B.K., a division of New York-based New Balance Inc., manufactures a wide range of athletic footwear, apparel and accessories, according a news release from New Balance.
In 2018, it began to diversify its manufacturing in Asia, where the company has about 1.5 million employees, including factories in China.
Eugene-area apparel manufacturers have been a hot commodity for Chinese manufacturers.
The country is growing rapidly in recent years, but has been plagued by an array of economic woes.
The U.K.-based retailer LVMH said in 2017 that it expects to be forced to sell its apparel manufacturing business to the Chinese government for $2 billion in 2019, citing China’s restrictions on imports of luxury goods and labor.
In 2016, the Chinese state-owned China National Offshore Oil Corporation announced it would shut down its offshore oil platform in the southern province of Guangdong, the second major closure in less than two years, and reduce the country’s output of oil by 80% by 2020.
The closure of LNOCO was the latest in a series of decisions by Chinese officials to curtail oil imports and demand for