American Leather moves to nearly double capacity
Joan Gunin -- Furniture Today, October 28, 2002
Dallas — American Leather will open a 205,000-square-foot factory and headquarters in southern Dallas in late 2003, nearly doubling capacity.
The company is one of the few North American leather upholstery makers expanding on U.S. soil. With upgraded and new machinery and equipment, the project will mean a total investment of $10 million.
The new facility, on a 21-acre tract, will support a minimum of 11 manufacturing cells, as opposed to six currently. The site can accommodate future expansion of up to 200,000 square feet.
"Most of our competitors are relocating operations overseas in order to reduce costs," said Sanjay Chandra, vice president and co-founder of American Leather. "By expanding domestically, we can step up capacity and remain competitive as a special-order manufacturer offering two-week lead time from the factory."
American Leather expects to reach capacity in its current 147,000-square-foot leased building by mid 2003. It anticipates at least a 15% sales increase in 2003.
"We are building this new facility to accommodate growth beyond next year," Chandra said.
The new facility will streamline materials handling and product flow, he said. Executive offices will occupy 25,000 square feet.
