Drexel closing 2 plants
By Furniture Today Staff -- Furniture Today, January 25, 2004
HIGH POINT — Drexel Heritage says it will close its Plant 2 case goods factory in Marion, N.C., in April and its Plant 60 veneer and plywood service facility in Morganton, N.C., around the same time.
Production will shift to other factories owned by the high-end manufacturer and importer's parent company, Furniture Brands International. Both plants will go up for sale, said Jeff Young, Drexel Heritage president and chief executive officer.
The 500,000-square-foot Plant 2 employs around 350 workers and the 150,000-square-foot Plant 60 employs 45. Some Plant 2 workers may be offered jobs at other plants, but most positions will be eliminated.
Most of the production will go to plants owned by sister FBI company Thomasville, said Bryan Milleson, chief financial officer and vice president of finance and administration for Drexel Heritage. Thomasville will determine where to produce the Drexel goods.
After the closures, Drexel Heritage will have three plants, all in North Carolina: a case goods plant in Hildebrand and upholstery plants in High Point and Morganton.
"Despite improving business, our plants have been operating at significantly below capacity for some time," Young said. "The transfer of Plant 2 and Plant 60 production to other Furniture Brands domestic facilities will enable our plants company-wide to operate more efficiently in the coming year."
Furniture Brands CEO Mickey Holliman said Drexel had strong order trends in late 2003, but that inefficiency at the plants to be closed was a drag on earnings.
FBI is scheduled to report its fourth-quarter earnings Wednesday.
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