US clothing business Delta Apparel is to consolidate fabric production for basic blank T-shirts at its Ceiba Textiles facility in Honduras.

The move will see Delta transfer the production of some fabric currently manufactured at the company's Maiden, North Carolina plant to Honduras, increasing production at the Ceiba Textiles facility by around 8% to 900,000 pounds of fabric per week.

This will shift production for blank tees to the company's most cost-effective facility and is expected to shorten the production cycle by around ten days.

In addition, the company is further reducing its US fabric production in order to "better align inventory levels with sales expectations". Total fabric production at the North Carolina facility will decrease by around 35%.

The moves are expected to result in around 70 job losses at the Maiden, North Carolina facility, the company said, and will lead to annual savings of $1.1m once the consolidation is complete. 

CEO Bob Humphreys, added: "These decisions are always difficult, especially when they affect associates who have been dedicated and loyal to our company for many years.

"However, the company can no longer justify the additional cost associated with its current level of domestic fabric production for the highly competitive blank tee shirt business. We believe this economic decision is in the best long-term interest of Delta Apparel and our shareholders."