DALTON, GA — Shaw Industries is exiting the area rug business and will spend $100 million to convert the current rug facility into a new luxury vinyl tile (LVT) manufacturing facility, according to a press release.

"The economics of the rug business today simply do not allow for future growth or encourage further investment," said Chief Executive Officer (CEO) Vance Bell.

"We have been intentional about exiting this business at a time when more opportunities exist for our associates," Bell added.

Most of the 400 employees of the Shaw Living rug division will have opportunities at other locations in the company, the release stated.

According to the release, in repurposing the current rug facility to a new LVT manufacturing site, Shaw will be able to shorten the timeframe to begin manufacturing the product, utilize an existing facility, and keep jobs in the Ringgold, GA, area.

Click here to read the release in its entirety.