Olon Industries Invests $1 Million in Indiana Plant Following Layoffs, Lexington Closure

Olon Industries, a Canadian manufacturer of wood components for furniture and cabinetry, has announced a $1 million investment in equipment upgrades at its Washington, Indiana, plant. The investment will fund the installation of an advanced automated panel wrapping line, aimed at improving production efficiency and lamination quality.

The new PUR wrap line, capable of running 255 mm components wrapped at 360 degrees, is expected to increase the plant’s capacity and flexibility to introduce new products while addressing issues with loose vinyl on the edges. Olon Industries plans to have the upgraded equipment operational by October 2025.

“We are excited about the opportunities this investment brings to our Washington, Indiana, plant, as it will not only improve production efficiency but also ensure we continue to deliver the highest quality products to our customers,” said Sylvain Duchesne, president of Olon Industries. “This project is an important step in responding to increased market demand and further enhancing our capabilities.”

This announcement comes shortly after Olon Industries confirmed the closure of its Lexington, North Carolina, manufacturing plant, resulting in the loss of 57 jobs. The company disclosed the closure in a Worker Adjustment and Retraining Notification (WARN) Act filing with the North Carolina Department of Commerce. The first round of layoffs at the 220,000-square-foot facility will take effect on March 28, with final operations ceasing by May 30, 2025. The Lexington plant, Olon’s largest in North America, was previously owned by Carolina Drawers before Olon’s acquisition in 2015.

The plant closure reflects ongoing challenges in the U.S. kitchen and bath cabinet and furniture industries, which have faced market shifts and economic pressures in recent years. Olon continues to operate manufacturing facilities in Georgetown, Ontario; Geneva, Illinois; and Washington, Indiana, where it is focusing on modernization and automation efforts to enhance its long-term sustainability and industry leadership.