Dorel Shutting Michigan Plant

May 17, 2007  by in UnCategorized   

By Home Furnishings Business in Case Goods on May 2007 Martin Schwartz, president and CEO of Montreal-based Dorel Industries, said Thursday that the company will suspend most operations at the company’s Dowageac, Mich., facility in July, but said the company’s various operations are continuing to improve and offer modest growth potential this year and more in 2008.

Saying the company’s manufacturing capacity exceeds anticipated needs, he said the shutdown of the Michigan plant will affect 170 to 215 workers. “We believe this will ensure the long-term viability of our domestic operations and speed Ameriwood’s (profitable) growth.”

The move will result in a pre-tax restructuring charge of approximately $11 million, the majority of which will be recorded this year.

Addressing shareholders at the company’s annual meeting, Swartz said that several new high-margin juvenile products will be introduced this year and next year. In addition, juvenile sales in Europe at record levels and efforts to improve the company’s ready-to-assemble business are on track.

Earlier this month, Dorel reported first quarter revenues of $455.7 million, up slightly from $455 million in the same period of last year.

“We have set in motion several initiatives in each of our divisions to capture increased market share and see considerable growth potential,” Schwartz said. “Product development has been a keen focus and the benefits of these efforts will be felt as early as the third quarter. Acquisitions have helped build Dorel’s global presence by purchasing businesses that offer opportunity and round out the company’s offerings. While we will concentrate on organic growth we will also look actively and carefully at new opportunities.”

Dorel’s US operations include Dorel Juvenile Group, Ameriwood Industries, Cosco Home & Office and Pacific Cycle.