January 23, 2014 - 7:15 AM
MONTREAL - Dorel Industries is restructuring its bicycle operations by closing a U.S. assembly facility and relocating its research operations in a move that will affect about 100 employees.
The Montreal-based company said the adjustments to its recreational and leisure division will completed this year and "enhance its competitiveness."
The assembly and testing facility in Bedford, Pa., will close with work being transferred to other sites and third-party suppliers.
The research and development facility in Bethel, Conn., will be transferred to the division's new headquarters in Wilton, Conn. The Bethel location will be used for other purposes.
Dorel (TSX:DII.B) said the changes will save US$6 million a year, after incurring US$14-US$16 million pre-tax in restructuring charges, about 70 per cent of them non-cash items.
The interim president of the recreational-leisure unit, Peter Woods, said the changes are designed to reduce the time to get products to market and improve costs and margins.
Dorel is one of the world's largest makers of bicycles and juvenile products such as car seats, plus ready-to-assembly furniture. Its bicycle brands include Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and Sugoi. It has annual sales of US$2.6 billion and employs 6,300 people in 24 countries.
News from © The Canadian Press, 2014