Afton plant to close its doors in October

The American Fibers and Yarns Company manufacturing plant in Afton will close Oct. 17, putting 40 people out of work, a company consultant said Friday.

The company makes fibers and yarns, including a mattress fiber, at its Afton plant.

Tim Boates of RAS Management Advisors, a company advising American Fibers and Yarns, said the increased production costs were the reason for the closing of the company.

He said the company had sought a new buyer but had not found one.

“We have engaged an investment banker to get buyers. We’re running up against the thing we have the least of: time,” Boates said.

Boates said the primary problem is that American Fibers and Yarns’ products are poly-propylene based.

“We use a resin that is petroleum-based,” he said. “In the past 18 months we have had a 55- to 60-percent increase in raw material costs,” Boates said.

Each time there is a price increase, the volume of the product is lost, he said.

Nelson County officials said they will work with the Virginia Employment Commission, Piedmont Community College and other economic development partners to help the displaced employees.

“We are coordinating workforce assistance with the employees,” said Maureen Corum, director of economic development and tourism for Nelson County. “We will use training programs and other services available to make sure everything is used to their advantage.”

Boates said American Fibers and Yarns’ other plant — in Bainbridge, Ga. — employs 240 people and will also be closed next month.

Earlier this week, American Fibers and Yarns filed for Chapter 11 bankruptcy protection in Delaware, citing debts of $10 million to $50 million to suppliers.