Furniture Brands Works on Cut-and-Sew Factory in Mexico

January 6, 2011  by in UnCategorized   

By Home Furnishings Business in Business Strategy on January 7, 2011 Furniture Brands International (NYSE: FBN) is developing a factory in Merida on Mexico's Yucatan Peninsula to provide cut-and-sew kits for its U.S. upholstery operations.

The company expects the facility will begin production by the middle of this year with an initial work force of 150 to 200 people.

"Developing our own production assets in best-cost locations is a key to improving Furniture Brands' profitability and manufacturing flexibility," said Ralph Scozzafava, chairman and CEO. "The Merida facility allows us to capture the value of efficient manufacturing while improving our quality and delivery metrics. Our long-term supply chain strategy calls for increased use of facilities and suppliers that are dedicated to our business and our success."

Ray Johnson, Furniture Brands' senior vice president of global supply chain, said the move will provide the company with "good skilled labor, a proven track record in cut-and-sew operations, and a flexible logistics network. As a result, I am very excited about our opportunity in Merida."