HNI Corporation announced it will close its Hickory, North Carolina, manufacturing plant during the first half of 2025 and consolidate production into its other North American facilities. The decision will impact approximately 200 production and operations members in Hickory.
HNI expects the consolidation to improve productivity and strengthen operations, without sacrificing capacity or creating disruption.
HNI will maintain a commercial presence in Hickory with its HBF brand of workplace furnishings and textile products. HBF’s brand headquarters will remain in Hickory as will its marketing, customer experience, product development, and product engineering members (employees).
“This is a strategic decision to optimize our operational footprint and improve business performance. We are announcing this several months in advance as part of our commitment to make the transition as smooth as possible. We will continue to grow our premium HBF business with our talented brand team in Hickory. This move will improve the customer experience for our trade partners and end-users, and more efficiently deliver on our commitments to safety, quality, lead-times, and reliability,” said Je Lorenger, HNI’s Chairman, President, and Chief Executive Officer.
HNI estimates the consolidation will save approximately $11 million annually once fully mature in 2026. Savings realized in 2025 are expected to be $8 to $9 million.
HNI anticipates charges resulting from the consolidation will impact pre-tax earnings by an estimated $10.3 million in 2024 and 2025, including $1.5 million of non-cash charges.
HNI Corporation is a manufacturer of workplace furnishings and residential building products, operating under two segments: The Workplace Furnishings and The Residential Building Products.
