Recent Investments Will improve Margins, add Growth
Dorel Industries Inc. has arranged both an extensive equipment investment at three of its Dorel Home North American factories as well as the purchase of Notio Living, an e-commerce home furnishings firm based in Holstebro, Denmark.
Factory investments
The equipment improvements to facilitate production flexibility will be at the two ready-to-assemble (RTA) furniture Ameriwood plants in Tiffin, Ohio, and Cornwall, Ont., as well as at Dorel Home Products (DHP) in Montreal, Que.
The upgrades, which total approximately $10-million (U.S.) across Dorel Home's North American manufacturing base, will bring back some production from Asia, helping to offset the industry-wide supply chain issues and will better position the segment for growth with value-added innovative new products.
"One of the key benefits of the production investment will be our ability to better serve our e-commerce partners with on-trend products made in North America.
The additions at the Ameriwood facilities will drive efficiencies and greater volume of higher-value product lines such as entertainment units, storage organization, fireplaces and wall beds, all of which are growing consumer categories," said Dorel Home chief executive officer Norman Braunstein.
Dorel Home has long been a major player in the mattress business, known for its lines of futon and baby crib mattresses as well as its award-winning Signature Sleep imported mattresses.
The new machinery at the DHP facility in Montreal will permit the expansion into coiled spring mattresses, previously imported from Asia. The new machinery at all facilities should be up and running by the first quarter of 2022.