Mannington and Tarkett Commercial Launch Joint Ven

Houston, TX and Salem, NJ, September 8--Mannington Mills and Tarkett Commercial announced the formation of a new manufacturing joint venture involving Tarkett’s Houston, Texas VCT plant. The new arrangement, which will be called Texas Tile Manufacturing LLC, will manufacture VCT for both companies and will replace the current joint venture between the two companies. The move will make the Houston facility one of the largest VCT plants in North America. “The VCT business remains a very important part of our long term Commercial strategy,” said Tom Davis, President and CEO of Mannington Mills. “While we have experienced good growth, the profitability of this business has been challenging due to soaring raw materials and freight costs, and this initiative makes us more competitive by reducing those freight costs to many of our customers.” “Over the last few years, investments made in the Houston manufacturing facility have improved manufacturing efficiencies and increased capacity by utilizing the latest technology in the industry,” says Gilles de Beaumont, president of Tarkett Commercial North America. “Now that our Houston facility has the largest production of VCT in North America, we feel confident the joint venture will further strengthen the two industry leaders, and help solidify Tarkett's influence in the market today, and in the future.” The companies said this relationship is purely a manufacturing joint venture that is run by its own board of directors. Both companies will maintain independent product lines, sales and marketing organizations, and both companies will continue to compete in the marketplace. Proprietary information, such as pricing, technology and product development will remain distinct, segregated and protected. Mannington will continue to manufacture VCT at its Salem, New Jersey facility. Tarkett will close its Vails Gate, New York VCT plant, which will eliminate 160 jobs. The company has produced VCT at the site since 1981.

Related Topics:Tarkett, Mannington Mills

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