Latexco expands Georgia plant, adding site in Phoenix

LAVONIA, Ga.—Latexco US is making sure it has the U.S. bedding market covered.

The producer of latex and polyurethane products is investing on both the east and west coasts to shore up its presence within the regions.

It recently completed a $12 million expansion to its Lavonia site, adding about 72,000 square feet of manufacturing space and bringing the size of the operation to 175,000 square feet. The site currently employs 90, but Chief Operating Officer Bob Carstens said that figure is projected to increase by 20 percent in the next 12 months.

As for the West Coast, Latexco is in the process of establishing a manufacturing site in Phoenix that will replace its current 66,000-sq.-ft. site in Santa Fe Springs, Calif. Production from California will relocate to the new site, which will span between 100,000 and 130,000 square feet, Carstens said.

He added that all 16 employees in California have been offered jobs and relocation packages. Those who are unable to move will receive a severance package. Employment at Phoenix will also increase by about 25 percent as the plant becomes fully operational. The firm is investing about $10 million in the project.

"It's hard to be competitive when you don't have a location (on the West Coast) to service from," Carstens said. "The distribution costs just become kind of a show stopper. Part of our strategy is to have a manufacturing location out there where we can grow the foam business as well as latex."

Part of the driver behind relocating to Phoenix is that the firm intends to relocate about one-third of its polyurethane pouring capacity from Lavonia to Phoenix, and then eventually upgrade one of the lines in Lavonia. Carstens said California would not permit them to locate this production there.

With Phoenix adding pouring, both sites will have virtually all of Latexco's capabilities. The firm makes various latex topper layers and comfort layers for mattresses, mold cores, mold pillows, and both urethane and latex foams.

And for those customers that can't get into the fulfillment business, Carstens said Latexco can do it on their behalf. This service is not in competition with its customer base, rather a service for the companies it serves to provide them the infrastructure.

In Georgia, the firm is investing to address growth and to bring its patented SonoCore process to the U.S. The line uses radio frequency technology and dielectric heating instead of conventional steam heating and drying. Latexco said this brings a significant energy reduction and more eco-friendly manufacturing.

The process also enhances physical properties, tear strength, density and compression compared to a traditional line. Carstens said it's also easier to operate and the footprint is smaller. It's the primary line producing Latexco's Pulse product.

Carstens said this technology was developed in Belgium, and the firm operates multiple lines throughout its European footprint. In addition to the two U.S. plants, Latexco operates five manufacturing sites in Belgium and one each in Spain, Sweden and Indonesia.

The two U.S. moves are designed to help Latexco double its sales within the region by 2021, Carstens said.

"Our goal is to be the one-stop shop for the bedding industry," he said. "Part of doing that is investing back into the company to make sure we have the technology to support the directions; that we have the right innovations and the ability to innovate; and that our domestic footprint is such that it's easier to do business with us. Having another operation in Phoenix that we can pour foam from is going to bring our supply chain costs down."