Wilson Sporting Goods, a subsidiary of Amer Group Plc, is closing its tennis ball manufacturing plant in Fountain Inn, South Carolina, and moving its production to Thailand, effective today. Some additional minor costs will be incurred due to this closure.
The reasons behind the decision to outsource tennis ball manufacturing are the rise of raw material and labor costs in the US as well as prevailing market conditions. As a result, all Wilson tennis balls will now be manufactured in Thailand and Indonesia, from where Wilson has already been sourcing some tennis ball production.
The Thai supplier's new, state-of-the-art facility with its all new equipment, is able to produce better quality at lower prices than the Fountain Inn factory. Wilson has already been shipping tennis balls from the new factory, which is located near Bangkok, since the fourth quarter of 1999. This supplier already manufactures products for Wilson's Team Sports Division.
Wilson employed approximately 300 full and part time staff at Fountain Inn, all of whom will be assisted in securing new employment through regional employment programs.
AMER GROUP PLC
Communications Dept.
Marja-Leena Simola
Vice President, Communications
Tel. +358 9 7257 8306
Fax +358 9 791 385
E-mail: marja-leena.simola@amer.fi
For further information, please contact:
Mr Roger Talermo, President & CEO, tel. +358 9 7257 8210
Mr Pekka Paalanne, Senior Vice President & CFO, Tel. +358 9 7257 8212