Latexco Closing U.S. Factories; European Production Continues

October 7, 2022  by HFBusiness Staff in Business Strategy, Industry   

Latexco US CEO Koen Gebruers said recent weak demand in the U.S. market has accelerated the decision from its Belgium-based parent company to cease production at both U.S. factories. He said the company remains committed to supporting U.S. customers, with Chief Sales Officer Brent Limer leading all sales and transitional activities.

“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 Lavonia, Ga., and Phoenix, Ariz., is expected to come to full stop by the end of October, with the successful transition for customers and employees completed by the end of the year. The closures will affect about 50 employees across both locations, and the company is providing assistance through the transition.

Latexco US employees and key customers were notified earlier this week, and a full liquidation of the business is underway. Gebruers noted that it will be a “clean liquidation” with no debt or accounts unsettled. The Lavonia facility totaling 175,000 square feet will be offered for sale. The Phoenix facility is a leased property.

Latexco US began operations at its Lavonia headquarters in 2006 and opened the Phoenix plant in 2018.

Parent company Latexco, headquartered in Tielt, Belgium, is the world’s leading manufacturer of latex foam components to the bedding industry with production capabilities in Belgium and Spain.