Latexco Ceases U.S. Production, Closes Lavonia and Phoenix Plants
Franklin County and the City of Lavonia are losing one of the anchor industries in the Gerrard Road Industrial Park.
On Wednesday, Latexco US announced it will close its East and West coast production facilities. Latexco has plants in Lavonia and Phoenix, AZ.
“Latexco has been a wonderful industrial partner with the City of Lavonia for more than 16 years. Their investment and participation in our community have made Lavonia, and Franklin County, a better place to work and live. Although I wish that the business environment had worked out more favorably for our friends, I remain grateful that they have been such valuable partners for many years. I wish them much success as they move forward,” said Courtney Umbehant, Mayor of Lavonia.
Latexco US CEO Koen Gebruers cited current weak demand in the U.S. market has accelerated the decision by the Belgium-based parent company to cease U.S. production.
However, he said Latexco 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 and Phoenix is expected to come to a 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 with strategic plans for bicoastal expansion to provide both latex and polyurethane foam to the bedding industry.
It opened its Phoenix plant in 2018. Parent company Latexco, headquartered in Tielt, Belgium, is the world’s leading manufacturer of latex foam components for the bedding industry with production capabilities in Belgium and Spain.
“Latexco has served as a tremendous asset to both the City of Lavonia and Franklin County, they have been an economic development staple for our community and we will miss the long-standing partnership we have created with them,” said Franklin County Industrial Development Authority Executive Director Tonya Powers. “As Latexco continues to strive to move forward, we wish them success and continued growth as they work to supply families all over the world with restful sleep.”
About Latexco US:
Latexco US is a forward-thinking, customer-centric organization uniquely positioned to serve as a one-stop shop with innovative bedding solutions, customization and fulfillment capabilities, and impressive speed to market. With facilities on the east and west coast, it is the only U.S. producer of both latex and polyurethane foam under one roof.