HNI Corp., the parent company of Paoli Inc., announced Friday morning it would begin phasing out its manufacturing operations at the Orleans factory.

Approximately 350 employees will be affected by the plant closure.


Gary Carlson, vice president of community relations for HNI Corp. said in a press release, that the plan is to begin phasing out the manufacturing operations in January. Some departments may leave the facility early in the year while others won’t be phased out until next fall.

In a press release, Stan Askren, HNI Corp. chairman, president and CEO, said, “Sales for the quarter did not develop as expected. Economic uncertainty is weighing on our markets making them more dynamic and difficult to predict than recent periods. Our operational performance continues to deliver strong results in a lower sales environment. Our businesses continue to compete well and we remain confident in our strategies as we respond to the changing environment. We maintain a positive long-term outlook.”

Askren noted the company will likely move the Orleans manufacturing processes to HNI companies in Iowa, North Carolina and New York.

Some portions of the business, such as administration and sales and marketing, will stay in southern Indiana but not in Paoli.

HNI, forecasted a third quarter sales decline of 4 to 7 percent, compared to being up 3 percent as previously estimated.