Carpet and flooring giant Shaw Industries will get out of the area rug business and turn its Ringgold, Ga., area rug factory into a luxury vinyl tile plant.

“The economics of the rug business today simply do not allow for future growth or encourage further investment,” said Shaw Chairman and CEO Vance Bell, in a statement. “We have been intentional about exiting this business at a time when more opportunities exist for our associates.”

The majority of the 400 people employed by the Shaw Living Rug Division will have opportunities at other locations in the company, Shaw said Monday.

Dalton, Ga.-based Shaw will spend more than $100 million on the new luxury vinyl tile facility, which is expected to create 200 new jobs.

To continue reading, click here.