Houston's Farouk Systems to hire 1,277 this year

By JENALIA MORENO Copyright 2009 Houston Chronicle
July 16, 2009, 12:29AM

Farouk Shami is using flat irons, dryers and other hair care tools to fight Houston's unemployment.

By year-end, the chairman and founder of Houston's Farouk Systems plans to hire 1,277 people to produce hair appliances at its north Houston manufacturing facilities instead of in Asia. Within the next four years, he expects to hire another 4,000 workers.

Shami started his business after his 1986 invention of an ammonia-free hair lightener. He ultimately built a 300,000-square-foot plant near Richey Road and Interstate 45 and employs nearly 600 workers who churn out shampoos, conditioners and hair color products.

Shami has manufactured hair care appliances in Asia for the past decade, but safety scares with Chinese products as well as a desire to sell “Made in the USA” products persuaded him to start manufacturing all of his products in Houston. He sold his South Korea plant last year and is phasing out orders of Chinese-made Chi brand hair appliances to create jobs at a new 189,000-square-foot factory near his north Houston facility.

He will host a grand opening and job fair July 30 and expects so many people that a shuttle will run from Greens?point Mall to the new factory from 9 a.m. to 4:30 p.m.

He will host a grand opening and job fair July 30 and expects so many people that a shuttle will run from Greens?point Mall to the new factory from 9 a.m. to 4:30 p.m.

He's hoping more consumers will choose U.S.-made goods instead of those made overseas, helping to offset higher labor costs.

“I feel like we can expand the volume,” said Shami, whose company sold about $1??billion in hair care products last year.

And he figures a U.S. location will slash transportation costs.

The expansion comes as the recession has taken its toll on U.S. manufacturing. The number of jobs in the sector fell by 136,000 in June and 1.9??million since the recession began in December 2007, according to the latest U.S. Labor Department report.

Despite the recession, his sales increased in part because he's expanded into foreign retail outlets, Shami said. On Tuesday, he returned from trying to break into the Lebanese market.

“I think recession is always an opportunity for people who want to progress,” he said.

The expansion proves a Houston company can compete in the global marketplace, Houston officials said.

“Originally founded right here in Houston, it speaks volumes that Farouk Systems has become an international industry leader in beauty products manufacturing,” said Jeff Moseley, president and CEO of the Greater Houston Partnership.

nancy@callnancyfurst.com.