InduFoam to invest over $3M to expand El Salvador plant

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By LatAm Reports Staff Writers

The company plans to invest another $2 million in 2025, with the aim of expanding its distribution center.

Indufoam was founded in 1982 and currently more than 400 people work in the company.

The exporter of furniture and mattress, Indufoam, will invest more than $3 million in expanding its plant with the aim of increasing its production.

The commercial director of Indufoam, José Roberto Gutiérrez, said that currently the plant, located on the road to Santa Ana, Ciudad Arce, has a roofed area of 35,000 square meters and plans to expand 5,000 square meters more.

In 2023, the IDB Invest approved to Indufoam $10 million of funding to expand the productive capacity and diversification of the machinery. This amount also sought to increase the labour force.

Indufoam’s president, Rene Toruño, explained that part of the investment was the interest of American entrepreneurs in acquiring their products.

“They told us that they were interested, and we said that first we had to build the facilities, import the machinery to be able to manufacture and that’s why we are doing it,” Toruño said.

The expansion began in February of this year and the company plans to conclude between July and August, during which period the installation of machinery is planned to begin operating.

Indufoam seeks to expand the productive and processing capacity specifically of polyurethane foam, basic raw material to produce the product catalogue that the company offers in the market.

The furniture company manufactures about 1,400 pieces of mattresses and bases, as well as more than 6,000 accessories a day.

Then the extensions are going to give us more foam production capacity because also the idea is to sell foam to other markets abroad, said the director.

Demand for exports

Toruño points out that currently of everything that produces 53 per cent remains on the domestic market, and the rest is exported. Indufoam currently exports to the United States, Mexico, the Caribbean, Central America and Panama, Colombia, as well as Ecuador, Chile, South Africa and Morocco.

With the expansion projections, local demand is expected to meet 10 per cent and export 90 per cent of what is produced.

The company notes that during export growth it remained solid, with a double-digit rise.

The country’s exports have fallen, in the first four months, but we maintain sustained double-digit growth for the most part thanks to the quality of the product that is very competitive outside and the quality name we have made in the international market, Gutierrez said.

By 2025, the company plans to continue investing about $2 million. Indufoam hopes to build another building to expand the distribution center.

This article has been translated after first appearing in Diario El Mundo