Tempur Sealy planning Q2 opening for Crawfordsville plant
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Kentucky-based Tempur Sealy International Inc. (NYSE: TPX) says its $138 million foam pouring manufacturing facility in Crawfordsville is on schedule to open in the second quarter. The bedding products manufacturer updated progress on the facility this month during its fourth quarter earnings call.
Plans for the 700,000-square-foot facility were first announced in June 2021, and ground was broken four months later.
During the call, Tempur Sealy Chief Financial Officer Bhaskar Rao said the facility will begin a phased opening in Q2, though a specific date was not provided.
“In order to optimize production in this new facility, we will phase bringing the plant online to ensure the highest level of quality while we grow into the incremental capacity,” Rao said.
The facility sits on 130 acres of land in Crawfordsville and will manufacture a variety of bedding products and components. The company said it will have room for further expansion up to 1 million square feet.
“This plant’s location complements the existing manufacturing footprint and enhances our ability to service our East Coast customers,” said Rao.
When the project was first announced, CEO Scott Thompson said Crawfordsville was also selected because of the state’s “robust business climate” and the quality of life in the city.
Tempur Sealy plans to create about 300 jobs by the end of 2025. The company, which employs some 8,000 people worldwide, began hiring for the plant last June.
The Indiana Economic Development Corp. offered the company up to $3.6 million in incentives for the project, as well as up to $450,000 to the local community to support infrastructure improvements.
Earlier this month, Tempur Sealy reported full-year net income of $456 million for 2022, a 27% decrease from the previous year. Despite the drop, Thompson said in a news release the company saw the second best sales and adjusted net income in its history.
“As we enter 2023, we expect success across our brand, product, and omnichannel initiatives to deliver growth on both the top and bottom line as the industry experiences a stable but subdued demand environment,” Thompson said.