September 10, 2021 | Bill Esler
Muscatine, IA—HNI Corporation (NYSE: HNI), with commercial furniture brands including Hon, Allsteel, Gunlocke, and OFM, will open a new office furniture manufacturing plant in Saltillo, Mexico.
Muscatine, IA-based HNI has made nimble moves to keep its office furniture business growing amid the work-at-home shifts during the COVID-19 pandemic, notable with Hon Basyx, its brand for home offices; and Spawn, furniture for the gaming community including professional esports teams. The January 2021 acquisition of Design Public Group has provided HNI rapid entree into omni-channel marketing and e-commerce for furnishings that straddle the markets between architects and designers, and consumers.
As a result, HNI workplace furnishings sales rose 11.7 percent to $344 million. With so many channels to its customers, in whatever manner they want to purchase, HNI is doing well.
The new facility will provide additional capacity to meet HNI’s growing customer demand for office seating. Contingent upon regulatory approvals, the new 160,000-sq.ft. facility is expected to employ an additional 250 workers and will begin production in the first quarter of 2022.
The plant will be located in the Mencorsa Industrial Park, Colonia San Jose de los Cerritos. HNI says it plans to continue increasing staffing levels at the Corporation’s other primary manufacturing locations in North America.
HNI is partnering with American Industries to help establish the Mexican operation. American Industries, a Mexican company established in 1976, has helped over 200 international companies successfully start and grow their manufacturing and distribution operations in Mexico. HNI is also working closely with the local government of Coahuila state which is committed to fostering a positive business environment in Saltillo.
“This is an important investment for HNI,” says Kevin Hoban, VP Manufacturing. “The additional equipment, labor force, and supply chain capacity we are creating in Saltillo will help us respond to strengthening demand. We are pleased to be working with the Coahuila government and American Industries and appreciate their support of this important project.”
HNI Corporation (NYSE: HNI) is a manufacturer of workplace furnishings and residential building products, operating under two segments. The Workplace Furnishings segment is a leading global designer and provider of commercial furnishings, going to market under multiple unique brands. The Residential Building Products segment is the nation’s leading manufacturer and marketer of hearth products, which include a full array of gas, electric, wood, and pellet-burning fireplaces.
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