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