Dinec moving operations to Trois-Rivière
By Michael J. Knell -- Furniture Today, March 27, 2005
Trois-Rivières, Quebec — Citing difficulties caused by a strengthening Canadian dollar and increased competition from Asia, casual dining and bedroom maker Dinec has reassessed its strategy and is closing its plant in nearby Louiseville, moving all operations here.
President and CEO Pat Gervais said the company remains sound, despite the competitive environment, and doubled its sales from C$20 million in 2001 to an estimated C$40 million last year.
"We have now reached maturity, which means we are less fragile, and we are experiencing new growth," he said. "We've come through the worst and the best is yet to come."
The move from Louiseville, where Dinec has been based since Gervais launched the company in 1991, is expected to be complete by the end of June. The plant's remaining 75 employees will be transferred to what Gervais described as "the high-performance facilities" at Trois-Rivière, joining the 125 staff members already there.
At its peak, Dinec employed about 300 people. Late last year, some 50 production and 16 administrative workers were laid off.
Work has begun to add a new assembly line and a new administrative center to the 73,000-square-foot plant. "Centralizing all of the activities at the same location will allow Dinec to increase its productivity," Gervais said, adding the new factory has 50% more capacity than the 85,000-square-foot Louiseville facility.
The Louiseville building is for sale, and in the meantime will be used for warehousing and materials handling. Gervais said its prime location in an industrial park should make it attractive to potential buyers.
Dinec will unveil Diva, a collection created by Quebec designers Jean Beauregard and Daniel Bissonette, at the April High Point market.
"The best way to counter Asian pricing is to offer what they can't," Gervais said. "Dinec's business model is based on personalization, quality, customer satisfaction and short lead times of no longer than 21 days. The new Diva collection will take personalization to a brand new level, anticipating the visions of designers as well as the needs of consumers. Furniture will be offered as single pieces or as complete units."
Dinec has earned several awards from various business organizations and twice has been ranked among Canada's 50 Best Managed Companies. Gervais has been inducted into Canada's Top 40 Under 40, a prestigious organization whose members include many rising young entrepreneurs.
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Dinec moving operations to Trois-Rivières
Mar 29, 2005
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