Dorel Closes Cannondale Factory in US
BETHEL, USA – To enhance its competitiveness Dorel Industries restructures its recreational/leisure segment which includes the shutdown of the Cannondale assembly in Bethel.
“Among the global initiatives this decision will leverage the strengths and capabilities of our global resources, third party partners, and existing facilities to simplify and optimize our business model”, says Dorel Industries’ CFO Jeffrey Schwartz.
Dorel announced that the operations currently performed at Bedford, including manufacturing, assembly, testing, quality control and customer and technical services are expected to be redeployed by the end of calendar 2014.
In addition, the recreational/leisure segment will relocate its research and development facility in Bethel to the segment’s new headquarters in Wilton also in the US state of Connecticut. It will also convert its former retail lab in Bethel to accommodate GURU Academy, Dorel’s dedicated training centre for retailers, activities. The value of the former Bethel headquarters will be written down to reflect the market value of the property.
Supply chain lead times
“The objective is to accelerate operational excellence at our recreational/leisure segment by strengthening its working relationships with its global partners,” said Peter Woods, Global CFO & Interim Recreational/Leisure President. “In particular, we want to significantly reduce development and supply chain lead times, improve cost structures and operating margins, and enhance quality while lowering warranty costs.”