Arte Mundi is expanding its production of engineered hardwood flooring to Riverside, Calif.
The new manufacturing plant is slated to begin production by June 2019, and the company estimates it will have an initial production capacity of 40,000 square feet per day.
The move to expand its manufacturing to the U.S. was influenced by the ongoing trade war between the U.S. and China, where Arte Mundi manufactures its flooring. The trade war has resulted in additional 10 percent tariffs on Chinese wood flooring products imported to the U.S., with the chance for more increases still looming.
“We feel that with all of the turmoil of the import duties, anti-dumping duties and tariffs, it is time to make the move,” CEO John Lee and Arte Mundi USA Partner Louis Kao said in a joint statement.
Because the majority of the company’s veneers are from the U.S. originally, it makes sense to make them in the U.S. and avoid the additional tariffs, the company added.
The company will continue to manufacture and ship flooring from its China manufacturing plants to the U.S., but it will adjust costs for its imported lines due to the tariff increases. It anticipates its California plant will increase to four additional production lines by the end of 2020.
Arte Mundi currently manufactures 120,000 square feet of engineered hardwood flooring per day in China.
