Bunk beds maker Dorel to close RTA plant in Missouri
30 Sep '05
2 min read
Bunk beds manufacturer Dorel Industries Inc announced a significant consolidation at Ameriwood Industries, the Company's ready-toassemble (RTA) furniture division. Production will cease at its Wright City, Missouri facilities by no later than December 31st, 2005, as part of the overall plan to improve the earnings of the Company's Home Furnishings segment.
Ameriwood has adopted an expanded marketing strategy, realigning marketing into four distinct groups, each focused on developing products unique to their categories. This strategy will include expanding into new designs and materials and aggressively growing the customer base. This product development process will encompass common defined processes and methodologies to allow for exceptional speed to market, from conception to delivery.
Dorel President and CEO, Martin Schwartz said that Ameriwood has undergone significant changes in the past 18 months with the support of its workers and their representatives, and I want to recognize the tremendous efforts of the Wright City workforce. However, although they remain confident that there will be sustained demand for domestically manufactured RTA furniture, they have concluded that their manufacturing footprint exceeded anticipated market needs.
The closure of the Wright City plant will result in a pre-tax restructuring charge of approximately US$11 million, the majority of which will be recorded in 2005. Of this amount, approximately US$8 million will be a non-cash charge representing the write-down of building, equipment and other assets. Annual pre-tax savings are expected to exceed US$5 million, commencing in 2006.
marketing@alchempro.com
