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HON furniture plant in Louisburg closing, costing 93 jobs

Friday 24 July 2009

Office furniture manufacturer The HON Company is shuttering its manufacturing facility in Louisburg, putting 93 people out of work.
The plant on N.C. 56, about 30 miles north of Raleigh, will shut down in phases through December, says Gary Carlson, vice president of member and community relations for HON’s parent company, HNI Corp. of Muscatine, Iowa.
Carlson said the company had been communicating with its employees for more than a year about the possibility the plant could close due to the economic condition of the furniture industry across the country. “The people in Louisburg have been great … but really it was excess capacity for us,” Carlson says.
HON will shift the work in Louisburg among its other manufacturing facilities in Muscatine, Iowa; Cedartown, Ga.; Owensboro, Ky.; and Florence Ala. The company has shut down plants in Richmond, Va., and near Los Angeles, Calif., since late 2007.
HON anticipates that charges related to the Louisburg plant shutdown will impact pre-tax earnings an estimated $3.4 million.
HNI Corp. reported on July 22 sales of $383 million in the second quarter compared to sales of $613.1 million the year prior.

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