Textile giant Delta Woodside Industries Inc on Wednesday announced plans to close a yarn factory in North Carolina with the loss of more than 100 jobs.

The South Carolina-based company said it will shut its Catawba plant in Maiden as part of a cost-cutting programme but emphasised the plant closing and 112 job losses will not affect the firm's weaving and finishing capacity.

It added in a statement it sees a third quarter charge of $400,000 to $500,000 for the closing and is currently holding talks over the outsourcing of the factory's production.

President and CEO, Bill Garrett, commented: "This is a very difficult decision that we regret having to make; however, we can no longer justify keeping this facility open.

"The 112 associates displaced by this move have been loyal and dedicated employees and will be missed. We are working to place as many of these people as possible in our other facilities and with other employers in the area."