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Wednesday, October 9, 2024

Coats American laying off 51 at Kings Mountain facility

Charlotte-based Coats American is laying off 51 workers at a facility in Kings Mountain, according to a filing with the N.C. Department of Commerce.

The layoffs are expected to occur in late November and will be permanent, according to the filing. The jobs range from spinning operator to machine operator and maintenance team leader. The ages of the workers range from 27 to 77.

The parent Coats Group, which makes yarns, threads and zippers, is based in Great Britain.

The company has been cutting back its employment in North Carolina in the past 12 months. Earlier this year, Coats cut 41 jobs at its McAdenville facility in Gaston County. That facility produces industrial-grade yarns used in protective apparel for firefighters and military personnel.

And in November 2022, the manufacturer cut 51 jobs, shuttering its Hendersonville plant.

In early 2020, Coats Group purchased Pharr High Performance as the Gaston County company exited the yarn business after 80 years, The Charlotte Observer reported.

The sale included six North Carolina manufacturing sites in McAdenville, Kings Mountain, Marion and Hendersonville, as well as its corporate office in Charlotte.

In 2017, Coats acquired Patrick Yarn Mill, a manufacturer of high-performance engineered yarns based in Kings Mountain. At the time, Patrick Yarn Mill had 150 employees, and annual sales were $36.5 million.

In the first six months of this year, the company reported revenue of $715 million, an 11% decline from revenue of $801 million in the first six months of 2022. Its operating profit fell 35% to $72 million from $111 million in the first six months of last year.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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