Ve­lan to close valve plant in Que­bec

Ve­lan Inc. is con­sol­i­dat­ing its valve man­u­fac­tur­ing plants in Que­bec, clos­ing one of three plants in the prov­ince. The com­pany says it will work with the union to min­i­mize the im­pact on its em­ploy­ees and help those who will be af­fected by this clo­sure.

Stockwatch Daily - - FRONT PAGE - Mr. Yves Le­duc re­ports

VE­LAN INC.’S mea­sures aimed at im­prov­ing its op­er­a­tional ef­fi­ciency and op­ti­miz­ing its man­u­fac­tur­ing foot­print in North Amer­ica. As part of the com­pany’s op­ti­miza­tion and spe­cial­iza­tion ef­forts in North Amer­ica, Ve­lan will con­sol­i­date its valve man­u­fac­tur­ing fa­cil­i­ties in Que­bec, Canada, from three plants into two. The com­ple­tion of the con­sol­i­da­tion is sched­uled for the end of 2020 or the be­gin­ning of 2021, al­low­ing for rea­son­able time for a proper tran­si­tion. The cur­rent pro­duc­tion will be in­te­grated into the com­pany’s other valve fa­cil­i­ties in Que­bec and In­dia, which will be fo­cused on the pro­duc­tion of spe­cific valve lines to im­prove de­liv­ery and sup­ply chain ef­fi­ciency. The com­pany will work with the union to min­i­mize the im­pact on its em­ploy­ees and help those who will be im­pacted by this clo­sure. The com­pany’s ob­jec­tive is to min­i­mize the im­pact of the lay­offs tak­ing into ac­count at­tri­tion and re­tire­ments. The other em­ploy­ees will be pro­vided with sev­er­ance and out­place­ment sup­port and some may be of­fered the pos­si­bil­ity of trans­fer­ring to other Ve­lan lo­ca­tions. This de­ci­sion is part of the com­pany’s con­tin­ual anal­y­sis of its over­all ac­tiv­i­ties.

Re­cently, Ve­lan re­or­ga­nized into strate­gic busi­ness units, al­low­ing the com­pany to sig­nif­i­cantly re­in­force its mar­ket po­si­tion­ing, bet­ter serve its cus­tomers and drive growth. This is in line with work over re­cent years, un­der the um­brella of its strat­egy, Ve­loc­ity 2020, to pur­sue ad­di­tional ef­fi­cien­cies, de­crease costs, and up­grade its sys­tems while strength­en­ing its mar­ket pres­ence, im­prov­ing its on time de­liv­ery and main­tain­ing its rep­u­ta­tion for high-qual­ity in­dus­trial valves.

Yves Le­duc, pres­i­dent and chief ex­ec­u­tive of­fi­cer of Ve­lan, said: “To bet­ter con­front the com­pet­i­tive trends in the in­dus­try and af­ter an in-depth strate­gic di­ag­no­sis, Ve­lan is un­der­tak­ing sev­eral trans­for­ma­tive ini­tia­tives to re­turn to prof­itabil­ity and growth. We are on the right track this year, al­low­ing us to take a mea­sured ap­proach to this con­sol­i­da­tion while ben­e­fit­ting from the re­duc­tion of costs it will af­ford.” About Ve­lan Inc. Founded in Mon­treal in 1950, Ve­lan is one of the world’s lead­ing mak­ers of in­dus­trial valves, with sales of $338-mil­lion (U.S.) in its last fis­cal year. The com­pany em­ploys over 1,800 peo­ple and has man­u­fac­tur­ing plants in nine coun­tries.

We seek Safe Har­bor.

Ch­eryl Mar­ion Hooper, Jacques La­ten­dresse, Yves Jacques Le­duc, James A Man­nebach, Wil­liam H Sh­effield, Robert Ve­lan, Thomas C Ve­lan

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