Interface announced on September 10, 2021, that the company plans to discontinue manufacturing operations at its carpet tile plant in Chonburi, Thailand. After thorough review of its global manufacturing footprint and overall production capacity, Interface has decided to consolidate Asia-Pacific (APAC) regional carpet tile production to its plants in Taicang, China and Minto, Australia.
Interface plans to produce carpet tile in the Thailand plant through the end of Q1 2022, and to fully exit the site by the end of 2022 following a decommissioning process.
By moving production to two facilities instead of three, Interface can increase its manufacturing throughput in China and Australia, driving production efficiencies, and will benefit from savings in fixed manufacturing and SG&A costs associated with managing and running its plants across APAC.
This change impacts 188 employees in production and non-production roles in Chonburi, Thailand. Over the next several months Interface will work with its impacted employees on transition plans to ensure they are treated with dignity, respect, and fairness in recognition of their many years of outstanding service. Interface also has established a core team to ensure the company continues to deliver the highest levels of customer service and support during the transition.
Interface anticipates it may need to make small capital and people-oriented investments in its China and Australia manufacturing to meet future capacity needs for APAC. The company will have more detail to share on planned investments in the future.
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