Linwood, PA, April 10, 2007--Foamex said that it is investing $3 million in capital improvements at its Tupelo, Mississippi operations, and will also consolidate its fabrication and pourline facilities, which are located approximately 1 mile apart. The capital improvements will include installation of state-of-the-art automated fabrication equipment and will secure the expanded facility's key role in Foamex's future growth plans. The consolidation is part of the Company's strategy to increase capabilities and efficiencies as it continues to distinguish itself as a technological leader and market-focused provider of polyurethane foam-based solutions and specialty comfort products.
Raymond E. Mabus, chairman and chief executive officer of Foamex, said, "We are pleased to announce that we will be investing more than $3 million to upgrade our Tupelo operations to make them safer and more versatile, environmentally-friendly and cost-efficient. This capital infusion represents the largest manufacturing investment Foamex has made in the State of Mississippi since 1994, and should be seen as a clear sign of our commitment to the Furniture and Bedding markets. Our Tupelo operations will continue to play a key role in Foamex's plans to grow through innovation and efficiency."
"Our investments in Tupelo have already begun to bear fruit, as evidenced by the recent launch of Reflex Natural, the newest addition to Foamex's Reflex product line, which provides the furniture industry a superior alternative to traditional polyurethane, fibers and synthetic fiberfills. Reflex Natural is a high-performance, environmentally-friendly flexible polyurethane foam, and our talented employees in Tupelo played a key role in the conception, design, and production of this exciting and unique product."
Foamex expects the upgrades will allow Tupelo to continue serving as an incubator for new technologies in the comfort cushioning area. In addition to Reflex Natural, the Tupelo facilities have played a key role in recently-launched bedding products such as Aerus, Energia and Venus.
Transition plans are in place to provide uninterrupted service to existing customers. The Company expects this transition will occur during the second half of 2007.
