Tempur-Sealy to Move LA Factory, Expand Mexican Operations

December 13, 2016  by Larry Thomas in Business Strategy, Industry   

The company said the Los Angeles move is expected to be complete in early 2018.

“We are thrilled to announce our intention to make these long term investments in the operations of our worldwide business,” said Tempur Sealy Chairman, CEO and President Scott Thompson. “The capital invested in these facilities highlights our commitment to quality product and growth of the company.”

Thompson noted that the company has outgrown the existing South Gate Sealy plant, which is also in need of modernization. This new state-of-the art facility is expected to include a new distribution center in addition to replacing the Sealy assembly facility.

The South Gate facility employs approximately 120 people, and Thompson said he is making it a top priority to seek a location for the new plant that is close to where the current workforce lives.

“Our company is committed to investing in the right high return on invested capital (ROIC) projects, but I also want to avoid disrupting our skilled employees who are critical to our success,” Thompson said. “Once operational, the company is expecting rent reduction and operational efficiencies combined with improved quality.”

The company also announced the purchase of additional land adjacent to its existing Sealy manufacturing plant in Toluca, Mexico. The purchase will facilitate expansion of the facility, leading to increased capacity and improved productivity.

In addition, Sealy South Korea, part of the Sealy Asia Joint Venture, recently announced the opening of a manufacturing and distribution center outside of Seoul. This investment positions Sealy South Korea for continued growth. Both of these expansions will supply the facilities’ home markets, the company said.