ST. LOUIS–Furniture Brands International is consolidating all five of its Broyhill upholstery manufacturing and warehousing sites in North Carolina into a single location in the area of Lenoir, N.C.
The Lenoir site is next to Broyhill’s existing central warehouse. It “will provide immediate efficiencies in logistics and work-flow management, and create additional manufacturing capacity,” according to a statement from Furniture Brands. The facility was a case-goods plant owned by Pacemaker, and has been idle since 2006.
Furniture Brands also said the facility will match Broyhill’s current production levels in the first quarter of 2009. Jeffrey L. Cook, president of Broyhill, said in the statement that plant provides cost savings, efficiencies and the ability to rapidly increase production as Broyhill’s upholstery business grows.
The consolidation will require capital expenditures of about $3 million, but will result in projected savings of $4.5 million in state, county and local incentives that will be available to the company through 2014, in the form of economic development grants and tax relief.
