News
3/24/2003 12:00:00 AM
"Factory of the Future"
DOREL TO BUILD JUVENILE “FACTORY OF THE FUTURE” IN COLUMBUS Benefits include cost savings and increased efficiencies Montreal, March 9, 2003---Dorel Industries Inc. (TSX: DII.A, DII.B; NASDAQ: DIIBF) today announced it will create the “Factory of the Future” to manufacture car seats on the site of its existing 800,000 square foot Cosco factory in Columbus, Indiana. The new state-of-the-art complex will replace the current plant as well as consolidate a distribution center located some 55 kilometers away. Other alternatives were considered, including out-sourcing all manufacturing to China. However, after an extensive analysis the Company concluded that the Columbus option provided the best scenario for significant cost savings, increased efficiencies and improved response for customers. The plan will close the 600,000 square foot Greenwood, Indiana distribution center and add approximately 300,000 square feet to the Columbus building. The project will cost up to US$26 million. Construction will start this spring and will require 12 to 18 months to complete. Cosco is a unit of the Dorel Juvenile Group (DJG). Dorel President and CEO, Martin Schwartz, said the Columbus “Factory of the Future” will result in a complete reconfiguration of the plant’s factory floor and will create numerous benefits. “The result will be an expeditious flow, from raw materials to finished product. We will double capacity with the addition of the most modern equipment and even better serve our customers with a build-to-order capability. This will not only serve them even better, but will greatly reduce inventory levels. New supplier arrangements will provide a consistent flow of materials on site. Former warehousing space will now be converted for manufacturing use. Transportation savings alone between Columbus and Greenwood will be close to US$2 million annually. The plan is part of DJG’s three year program to improve profitability. Cash freed from inventory reductions, efficiencies and other anticipated cost savings will help finance the project. In addition, both Indiana state and local governments are providing substantial incentives and funding,” concluded Mr. Schwartz. PROFILE Dorel Industries Inc. is a global manufacturer of consumer products. It specializes in two market segments: juvenile products and home furnishings. Dorel's extensive product offering includes juvenile products such as infant car seats, strollers, high chairs, toddler beds, cribs, infant health and safety aids, play-yards and juvenile accessories; home furnishings such as a wide variety of Ready-to-Assemble (RTA) furniture for home and office use as well as metal folding furniture, futons, step stools, ladders and other imported furniture items. Dorel employs approximately 4,500 people in fourteen countries. Major North American facilities are located in Montreal, Quebec; Cornwall, Ontario; Columbus, Indiana; Wright City, Missouri; Tiffin, Ohio; Dowagiac, Michigan; and Canton, Massachusetts. The Company's major divisions in the United States include Ameriwood Industries and the Dorel Juvenile Group (DJG USA), which incorporates the Cosco and Safety 1st brand names. In Canada, Dorel operates Ridgewood Industries and Dorel Home Products. European operations are carried out through the Dorel Juvenile Group (DJG Europe) located in Holland and the Ampa Group which has major facilities in France, Italy and Portugal. Brand names marketed in Europe are Maxi-Cosi, Bébé Confort, Quinny, Safety 1st, Babidéal, MonBébé and Baby Relax. Dorel's imported furniture business is carried out through Dorel Asia. FORWARD-LOOKING STATEMENTS Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results. CONTACT Maison Brison Rick Leckner (514) 731-0000 brison1@Maisonbrison.com
