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DOMINION TEXTILE TO CLOSE APPAREL FABRICS PLANTS IN CANADA

 DOMINION TEXTILE TO CLOSE APPAREL FABRICS PLANTS IN CANADA
 MONTREAL, Feb. 18 /PRNewswire/ -- Dominion Textile (Montreal Stock Exchange: DTX) announced today that it will discontinue operation of its Dominion Fabrics Company, resulting in the permanent shutdown of its weaving plant in Long Sault, Ontario and its finishing plant in St. Timothe, Quebec.
 The Corporation attributed the decision to continuing losses in this operating company and poor prospects for recovery. Dominion Fabrics Company is engaged in the manufacturing and marketing of fashion and career apparel fabrics in Canada.
 This decision does not affect the Vivatex operation in Trois-Rivires and the Swift Textiles denim plant in Drummondville, Quebec.
 Shipments of apparel fabrics from Dominion Fabrics Co. declined by 65 percent during the past five years. Despite capital expenditures to modernize plants and productivity programs to improve its financial performance, the operating unit failed to restore profitability during this period.
 "This decision is based on our previously stated objectives to restructure our business portfolio in order to establish and strengthen leadership positions in our core businesses internationally and address those business units which are underperforming," said Charles H. Hantho, chairman, president and chief executive officer of the corporation. "While the Corporation could no longer justify supporting this business unit, the future prospects for the other Canadian operations and our international companies remain positive."
 The costs associated with this restructuring were provided for as part of a $68 million special charge taken in the fourth quarter of fiscal 1991.
 The Dominion Textile Fabrics Company, with sales of $70 million in 1991, employs 365 people at Long Sault, 225 people at St. Timothe, 30 at its Montreal corporate office and four at its Toronto sales office.
 The company will continue to supply its customers until stocks are depleted and some products will be transferred to other units for continued supply. Production is scheduled to cease in phases over the next three months in Long Sault and over the next three to six months at St. Timothe.
 In addition to the notice of termination, employees will receive a severance package based on years of service. Dominion Textile also stated that, in conjunction with union representatives and appropriate government agencies, adjustment programs including retraining and other assistance will be examined to help employees.
 -0- 2/18/92
 /CONTACT: Lise Charron of Dominion Textile, 514-989-6468/
 (DTX) CO: Dominion Textile ST: Quebec IN: TEX SU:


SH -- NY045 -- 9882 02/18/92 11:24 EST
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Publication:PR Newswire
Date:Feb 18, 1992
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