Top 40 supplier The Magnet Group (asi/68507) announced this week that it will be closing its facility in Camarillo, CA, and relocating operations to a new building it purchased in Washington, MO. The move will help The Magnet Group cut costs by consolidating processes and reducing freight expenses, according to CEO Bill Korowitz.

These cost savings “should prove to be a significant benefit to all of our customers,” Korowitz said. “Everything we do is for our customers.” Still, he noted that the company is sensitive to the contributions its California staff has made: “We’re really thankful for what our employees and families have done. They’ve been great for us.”

The move into the new facility is expected to be completed by the end of January, he said. “Thanks to diligent planning, we should have no interruption of services to our customers,” Korowitz said.

Washington, MO, is already the home of many of The Magnet Group’s operations: Magnet; Innovations by Magnet; Benchmark; Perfect Line; The Bag Factory; The 1919 Candy Co.; and Towels by The Magnet Group. Its Castelli division remains in Reno, NV, and South Carolina.

Magnet’s new building is a bigger space, with more cubic feet, than the Camarillo facility offered. “We’re going up, instead of out,” Korowitz explained. The Magnet Group expects to bring about 50 jobs to Washington with the move.

Some of the product that had been produced in Camarillo will be moving to South Carolina, bringing about 20 to 30 jobs to the Fran Ford Center the company christened last October.

About 20 employees – in customer service, purchasing and product development – will remain in California to ensure continuity, according to Korowitz.

The Magnet Group, based in Atlanta, ranked 12th in Counselor’s latest list of top suppliers, with 2018 North American promotional products revenue of $117.9 million.