MATTRESS INDUSTRY NEWS RELEASE
News release written by Tempur Sealy and published, unedited, by BedTimes
Investments Support Brand Quality and Position Company for Continued Growth
LEXINGTON, Ky. (December 13, 2016) – Tempur Sealy International, Inc. announced today future plans to move and upgrade its South Gate Sealy plant to a new Los Angeles-area location as well as expand its Mexico operations. The Los Angeles move is expected to be complete in 2018.
“We are thrilled to announce our intention to make these long term investments in the operations of our worldwide business,” said Tempur Sealy Chairman, CEO and President Scott Thompson. “The capital invested in these facilities highlights our commitment to quality product and growth of the company.”
Thompson noted that the company has outgrown the existing South Gate Sealy plant, which is also in need of modernization. This state-of-the art facility is expected to include a new distribution center in addition to replacing the Sealy assembly facility. The facility is expected to be fully operational in early 2018.
The South Gate facility employs approximately 120 employees and Thompson is making it a top priority to seek a location for the new plant that is close to where the current workforce lives.
“Our company is committed to investing in the right high Return on Invested Capital (ROIC) projects, but I also want to avoid disrupting our skilled employees who are critical to our success,” Thompson said. “Once operational, the company is expecting rent reduction and operational efficiencies combined with improved quality.”
The company also announced the purchase of additional land adjacent to its existing Sealy manufacturing plant in Toluca, Mexico. The purchase will facilitate expansion of the facility, leading to increased capacity and improved productivity. In addition, Sealy South Korea, part of the Sealy Asia Joint Venture, recently announced the opening of a manufacturing and distribution center outside of Seoul. This investment positions Sealy South Korea for continued growth. Both of these expansions will supply the facilities’ home markets.
About Tempur Sealy International, Inc.
Tempur Sealy International, Inc. (NYSE: TPX) is the world’s largest bedding provider. Tempur Sealy International, Inc. develops, manufactures and markets mattresses, foundations, pillows and other products. The Company’s brand portfolio includes many highly recognized brands in the industry, including Tempur®, Tempur-Pedic®, Sealy®, Sealy Posturepedic® and Stearns & Foster®. World headquarters for Tempur Sealy International, Inc. is in Lexington, KY. For more information, visit http://www.tempursealy.com or call 800-805-3635.
Aubrey Moore, Tempur Sealy Investor Relations
Rick Maynard, Tempur Sealy Public Relations