Foamex International To Invest $25 Million To Expand Variable Pressure Foaming (Vpf Sm) Manufacturing Capacity

Furniture World Magazine

Foamex International Inc. (Nasdaq: FMXI), North America's largest manufacturer of flexible polyurethane and advanced polymer foam products, today announced that it will more than double its variable pressure foaming (VPF sm) manufacturing capacity in the United States. The new VPF sm capacity will be installed at the company's manufacturing facilities in Cornelius, North Carolina and Auburn, Indiana beginning in the first quarter of 2001. VPF sm is a proprietary, environmentally friendly manufacturing process developed by a Foamex joint venture in response to the Clean Air Act of 1990 and to the growing demand for high- performance polymers. Foamex, which has exclusive manufacturing rights to the technology in North America, currently operates VPF sm manufacturing facilities in Tupelo, Mississippi and Orange, California. "This technology is the most innovative development in the manufacture of urethane-based foam products in the past decade," said John G. Johnson, Jr., President and Chief Executive Officer of Foamex. "Instead of producing foam at ambient pressure, VPF sm produces it continuously in an air lock chamber. This process provides higher yields from raw materials and produces polymers with a wide range of performance properties never before possible. "The VPF SM process will also facilitate our compliance with future environmental regulations," Johnson continued. He explained that the conventional ambient foam pouring process utilizes auxiliary blowing agents such as methylene chloride, acetone, pentane or carbon dioxide, which must then be released into the environment. VPF sm technology eliminates the need for these auxiliary agents, so that the manufacturing process is essentially emission-free. "The combination of superior product performance and regulatory compliance provided by VPF sm means an important technological edge for Foamex," emphasized John Televantos, President of the company's Foam Products Group. "Increasing our VPF sm capacity from two to four locations enhances our ability to deliver a superior product to customers throughout North America while lowering distribution costs and maintaining the highest environmental standards." The announced expansions will increase the company's VPF sm production from 20% of its total manufacturing capacity currently to about 45% by 2002. Televantos estimated the total investment for the two new installations to be approximately $25 million. He expects the VPF sm technology to be fully operational at Cornelius early in 200 1, with the Auburn installation scheduled for completion in the middle of that year. Foamex uses the VPF sm technology primarily to produce a variety of high performance cushioning foams for the bedding, furniture, carpet cushion and automotive industries. A significant portion of the Cornelius VPF sm capacity will be devoted to the production of the company's proprietary Reflex® product line for the furniture industry. Reflex® is a family of advanced cushioning products which deliver longer-lasting durability, better feel and greater comfort than conventional cushioning products. Pete Wallace, Executive Vice President of Foamex's Southeast Foam Products Group, said, "This investment is an indication of Foamex's commitment to-North Carolina and its furniture industry, and recognition of the growth opportunities that industry represents for Foamex. With this VPF sm installation and the related building expansion at Cornelius, we are tripling our foam production capacity, doubling our foam storage capacity, and increasing our distribution efficiency." Greg Barbe, Executive Vice President of Foamex's Northeast Foam Products Group, said, "The Auburn, Indiana facility is centrally located to our furniture-, bedding and automotive customers in the midwest. This VPF SM installation will enhance our ability to serve them with high-quality foam products that will help them differentiate themselves in their respective markets." "Reflex® is just one of the specialty products that can be manufactured only with VPF sm technology," Johnson noted. "In addition, we produce advanced products for the bedding, carpet cushion and automotive industries, and we're exploring opportunities to use VPF sm to produce new materials for protective packaging and other applications. "Foamex is fortunate to have a strong manufacturing asset base," Johnson continued, "and we are excited about significantly enhancing our core operations to include expanded VPF sm capabilities." Foamex, headquartered in Linwood Pennsylvania, is the world's leading producer of comfort cushioning for bedding, furniture, carpet cushion and automotive markets. The company also manufactures high-performance polymers for diverse applications in industrial, aerospace, electronics and computer industries as well as filtration and acoustical applications for the home. Revenues for 1999 were $1.3 billion. For more information visit http://www.foamex.com.