Foamex International Inc. will consolidate its technical foam production in Fort Wayne, Ind., in the first quarter of 2008.
The firm will close its Eddystone, Pa., technical foams plant and relocate equipment to the firm's Fort Wayne facility, already a technical foams producer. As well, Foamex will invest more than $10 million in Fort Wayne, adding equipment, processes and staff, and repositioning the plant configuration to accommodate the growth without adding more floor space.
A spokesman said technical foams encompass specialties used in consumer, medical, electronic and other markets. The Linwood, Pa., firm also makes foams for bedding, furniture, carpet cushion and automotive applications. Foamex products are based on flexible polyurethane foams.
The Fort Wayne operation now employs 195. Some 30 new jobs will be created by 2010 as a result of the consolidation. Foamex also employs 200 at a plant in Auburn.
A Foamex spokesman said the consolidation only affects the Eddystone production plant, which employs about 80. A research and development laboratory in Eddystone is not affected by the shutdown.
``Consolidating these operations will also allow us to further standardize processes, lower costs, and improve customer service, thereby enabling us to be more competitive,'' said Foamex President and Chief Executive Officer Jack Johnson in a news release.
The firm said it expects cost savings of more than $5 million per year related to the consolidation.
The Indiana Economic Development Corp. has offered Foamex up to $210,000 in performance-based tax credits and up to $84,000 in training grants. The city of Fort Wayne is considering property tax abatement and a grant of up to $150,000.
Foamex emerged from Chapter 11 bankruptcy protection in February, about a year and a half after it sought protection.