ADA — Direct-selling giant Amway Corp. plans to close two plants in West Michigan as part of a restructuring of its manufacturing operations, MiBiz has learned.
The closure of both manufacturing plants — which make durable goods and laundry soap powder — will take effect by the end of 2019. The sites are located at its headquarters campus on Fulton Street in Ada, just east of Grand Rapids.
Amway does not expect any manufacturing job losses to result from the closure, according to Anna Bryce, the manager of corporate and executive communications.
Bryce said the company planned the closures in a move to improve efficiencies in its manufacturing operations.
“These are part of a manufacturing transition that began in 2017 to streamline processes, gain efficiencies and respond to needs in the marketplace — for example, powder detergents are a less popular segment of our laundry mix today than other formulas,” Bryce said in an email to MiBiz. “Both of these moves will enable Amway to meet the needs of our business now and in the future as we continue to focus on making manufacturing an important and competitive asset for our company.”
The closures of the two plants happen amid a period of declining sales for Amway. The privately-held company said in February that its revenues dipped for a fourth consecutive year in 2017, when it said it generated $8.6 billion in global sales, as MiBiz previously reported.
While sales have slumped more than 27 percent since peaking at $11.8 billion in 2013, the company said at the time that it expected to see a turnaround in its business this year.
Nutrition and dietary products made up half of Amway’s sales last year, while home and durable products were 21 percent of sales.