Dorel Juvenile Group Usa Opens Technical Center For Child Safety
Montreal, Quebec - 9/2/2010
Dorel Industries (TSX: DII.B, DII.A) today officially inaugurated the new Dorel Technical Center for Child Safety at the Dorel Juvenile Group (DJG) car seat manufacturing campus in Columbus, Indiana. The multi-million dollar facility will centralize all North American R&D and product development and will foster cutting-edge innovation in the design of car seats and other juvenile products.
“The new Technical Center encompasses everything necessary to conceive, build and test car seats in one ultra modern, state-of-the-art facility,” commented Dorel Juvenile Group USA President Dave Taylor. “This industry-leading Center will foster ground- breaking developments in child safety for years to come.”
The Dorel Technical Center for Child Safety features specialized research and design facilities, including computational engineering resources, environmental lab testing, three independent crash test sleds, and advanced side impact testing capabilities. The Technical Center is located adjacent to Dorel’s current one million square-foot manufacturing facility which can produce up to 20,000 car seats per day.
“As the largest manufacturer of car seats globally and a leader in many other juvenile product categories, we have a responsibility to design products with the highest standards of quality and safety. We take the trust that parents and caregivers place in Dorel and in our brands very seriously. This latest initiative is proof positive of that,” commented Dorel Industries President and Chief Executive Officer Martin Schwartz.
The grand opening of the Dorel Technical Center for Child Safety marks the first major initiative in the Company’s car seat product capital investment program and entails a total investment of US$21 million through 2013. This first phase involved an expenditure of US$3.6 million and has resulted in 26 new jobs at the new Technical Center. A total of 100 new positions will be created over the next four years in Columbus as a result of the capital investment program.
Several local and state government officials were on hand today for the opening ceremonies.
“By consolidating all of its high-tech product development work in Columbus, Dorel has made Indiana the foundation for the future of its car seat business. Today is further evidence that our business-friendly environment and focus on keeping taxes low, yields new opportunities from global companies at the top of their respective industries,” said Mitch Roob, Indiana Secretary of Commerce and Chief Executive Officer of the Indiana Economic Development Corporation.
Ninety percent of Dorel’s North American car seats and 50 percent of DJG USA’s total business are currently produced and distributed from the Columbus facility.
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Established in 1962, Dorel creates style and excitement in equal measure to safety, quality and value. The Company’s lifestyle leadership position is pronounced in both its Juvenile and Bicycle categories with an array of trend-setting products. Dorel’s powerfully branded products include Safety 1st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose, IronHorse and SUGOI in Recreational/Leisure. Dorel’s Home Furnishings segment markets a wide assortment of furniture products, both domestically produced and imported. Dorel is a US$2 billion company with 4500 employees, facilities in nineteen countries, and sales worldwide.
Caution Regarding Forward Looking Statements
Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, Dorel does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from Dorel’s expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, Dorel cannot guarantee that any forward-looking statement will materialize. Forward-looking statements are provided in this press release for the purpose of giving information about Management’s current expectations and plans and allowing investors and others to get a better understanding of Dorel’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward- looking statements for any other purpose.
Forward-looking statements made in this press release are based on a number of assumptions that Dorel believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations expressed in or implied by the forward-looking statements include: general economic conditions; changes in product costs and supply channel; foreign currency fluctuations; customer and credit risk including the concentration of revenues with few customers; costs associated with product liability; changes in income tax legislation or the interpretation or application of those rules; the continued ability to develop products and support brand names; changes in the regulatory environment; continued access to capital resources and the related costs of borrowing; changes in assumptions in the valuation of goodwill and other intangible assets and subject to dividends being declared by the Board of Directors, there can be no certainty that Dorel’s Dividend Policy will be maintained. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in Dorel’s annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors outlined in the previously mentioned documents are specifically incorporated herein by reference.
Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect on our business, financial condition or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward- looking statements as a prediction of actual results.
Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Dorel therefore cannot describe the expected impact in a meaningful way or in the same way Dorel presents known risks affecting the business.