by Company said move is related to weak demand in the U.S. market
LAVONIA, Ga. — Latexco US, a producer of latex and polyurethan foam to the bedding industry, said it is closing its East and West Coast production facilities here and in Phoenix by the end of this month.
However, it will continue to supply its customers through a container direct program that ships product from its global network.
Company CEO Koen Gebruers attributed the decision to weak demand in the U.S. market. However, he said the company remains committed to supporting U.S. customers and that Chief Sales Officer Brent Limer will lead all sales and activities related to the transition.
“Our diligent watch and analysis of market trends have guided us in this decision to consolidate the business in order to continue providing high quality products while being more competitive in price and effective in servicing our valued customers,” Gebruers said.
Production in both Lavonia and Phoenix will cease by the end of October with about 50 workers affected by the closures in both locations. The company said that it is providing assistance to these workers throughout the transition.
The company began operations in Lavonia in 2006 as part of a long-term plan to expand its presence producing latex and polyurethane foam for the bedding industry on both coasts. It opened the Phoenix facility in 2018.
The company said it notified employees and key customers of the move earlier this week. A full liquidation — which Gebruers described as a “clean liquidation with no debt or accounts unsettled” — is underway. It is selling the 175,000-square-foot facility in Lavonia. The Phoenix facility is a leased property.
