Palliser will close Alberta leather factory, shift work
Michael J. Knell -- Furniture Today, July 2, 2007
Airdrie, Alberta — Palliser will close its 142,000-square-foot leather upholstery plant here and move production to factories in Winnipeg, Manitoba, and Saltillo, Mexico.
"Production will be reduced over time, with final production in November," the company said. The Alberta plant employs 135 people. Palliser is based in Winnipeg.
Although the Alberta plant has performed well and remains profitable, recruiting and retaining labor in the red-hot, energy-driven Alberta economy is increasingly difficult, Palliser said, adding, "The dynamic Alberta economy also makes it attractive to sell real estate at this time."
The company noted it has been shifting its focus to supplying custom product delivered quickly to retailers, and has boosted fabric choices and added an import program, broadening the range of products and services it provides to North American dealers.
"The combination of manufacturing facilities in the center of Canada and in northeast Mexico allows Palliser to offer a unique service to North America," the company said, noting its Mexico plant has lower costs.
