Mexican move

02/04/2008

Furniture firm La-Z-Boy will abandon all domestic cut and sew operations, sending the production to Mexico. The company has decided to close its facility at Tremonton, Utah where, until now, it has carried out this part of its operation.

This activity will move to a factory in Ramos Arizpe, in the Mexican State of Coahuila, starting from early 2009.

Chief executive officer, Kurt Darrow, said: “With its proximity to the US and the lower cost structure inherent in a Mexican-based operation, we made the decision to transition our domestic cutting and sewing operations while streamlining the assembly aspect of production in the United States. Our new Mexican facility will be able to rapidly supply our domestic plants with cut-and-sewn leather for custom orders.”