Foamex International Inc. plans to close its Eddystone, Pa., factory and consolidate its Technical Products business at the firm's Fort Wayne facility by early 2008.
The flexible polyurethane and advanced polymer foam maker is expanding capacity at the Fort Wayne facility to take on the additional production, according to a spokesman.
About 115 will be laid off at the Eddystone factory while 30 jobs are expected to be created at the Fort Wayne plant, where it presently has a work force of about 190, he said.
The company plans to sell the Eddystone facility once the consolidation is complete.
Foamex, headquartered in Linwood, Pa., is making the move to increase operating efficiencies while building its Technical Products business, the spokesman said.
The company manufactures flexible polyurethane foam for the bedding, furniture, carpet cushion and automotive industries along with technical foams for applications in the industrial, electronics, transportation and consumer markets.
Laid-off employees will receive severance packages and transition services, the firm said in a prepared statement.
The firm expects to realize annualized cost savings in excess of $5 million related to the consolidation. It likely will record related charges of about $8.1 million through the first quarter of 2008.
The integration of the Eddystone and Fort Wayne operations is one in a series of steps Foamex has taken to position the company globally to service the flexible polyurethane market, according to CEO and President Jack Johnson. He took over the president's post in August when Gregory Christian, a key member of the team that guided Foamex through Chapter 11 bankruptcy, resigned to pursue other interests.
Those steps include consolidating its fabrication and pour line facilities in Tupelo, Miss., in April and investing $3 million in capital improvements in the plant; the sale of its 70-percent interest in Foamex Asia Co. Ltd. to Hua Kee Co. Ltd. in August; and sale of the firm's carpet cushion facilities to Future Foam Inc. in September.
Johnson said the Fort Wayne facility is a ``best-in-class'' operation and the company is making significant investments in people, processes and equipment to handle the consolidation.
Merging the two operations will allow the firm to standardize processes, cut costs and improve service, he said.
A lean Foamex International and its primary operating subsidiary, Foamex L.P., emerged from Chapter 11 bankruptcy protection in February with plans to be a market-focused provider of polyurethane foam-based solutions and specialty comfort products, Chairman Raymond Mabus Jr. said at the time.
He and other company officials said the firm planned to use innovation as its cornerstone, remain lean and constantly look for ways to improve the business and its bottom-line costs.