Norwood Plans To Consolidate Some Manufacturing Operations


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Norwood Plans To Consolidate Some Manufacturing Operations
By: Staff
Issue: 2010feb

Indianapolis, Indiana-based supplier Norwood Promotional Products (UPIC: NORWOOD), a subsidiary of BIC Graphic USA (UPIC: BIC), said today it plans to close its San Antonio, Texas, facility and consolidate operations into its Redwing, Minnesota, facility and other existing Norwood locations. In addition, the supplier will relocate the support functions in its Indianapolis office to Clearwater, Florida.

The San Antonio site employs 345, who will be given first consideration and relocation assistance for open positions at Norwood and BIC. Norwood finance, marketing, IT, legal and human resources functions in the Indianapolis office will be moved to the corporate offices in Clearwater. The 99 employees will be offered a relocation package to aid them should they choose to move.

Norwood and BIC Graphic have undergone a strategic analysis of operations in the last several months to streamline operations in core product categories. The announced changes are expected to be completed by year end.

“The decision to close these two sites has not been easy and is not a reflection on the dedication or performance of our employees,” says BIC APP Chief Executive Officer Nicolas Paillot. “These steps allow us to improve processes to benefit both our customers and the organization. Our goal is to create the most customer focused and cost efficient organization in the industry.”

All product lines will transfer to other Norwood and BIC facilities, says Paul Lage, MAS, president of Norwood. Most of the work will move to the Redwing facility, where 45,000 square feet is being added for the additional work, he adds. “In the long term, this is the right decision for the organization,” says Lage. No other closings or office moves are expected for the rest of the year, he adds.

“These are two big moves,” he told PPB in an interview this afternoon. “Nothing else is on the table right now for the rest of the year.”

Comments (4)

2/23/2010
Clay Schaefer (claycsa@swbell.net)
company: Clay Schaefer & Associates, Inc.
title: President/Owner
"Will we still receive FOB San Antonio on freight. This is especially important on heavy items like Mugs."

2/24/2010
Roger Halverson (roger@matrixresourcing.com)
company: Matrix Resourcing
title: President
"Welcome to Minnesoata. Given the opportunity the folks from Texas will find Red Wing a great place to live and work. If you have questitions I would be happy to help. Roger"

2/24/2010
David Rakowitz (drakowitz@lonestartees.com)
company: Lone Star Special Tees
title: Purchasing Director
"It is a shame that Norwood is shuttering its San Antonio plant. It is a first-rate facility that I have toured a few times. In a city where there are no local wholesale garment distributors, it was nice to have a local source for ASI items from RCC and Air-Tex. We will be taking our business elsewhere to the 2 other companies in Dallas. I guess the bigger the company (BIC), the less they respect San Antonio."

2/26/2010
Kenneth L. Bush (bushmanagement@gmail.com)
company: Bush Companies of Minnesota - Red Wing HQ
title: Managing Principal
"This is great for Red Wing! We are a relocation company and if we may be of assistance, Please visit us on the web at www.livinginredwing.com"

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