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Shermag will lay off 90 workers at Disraeli plant
By Furniture Today Staff -- Furniture Today, August 27, 2006
Sherbrooke, Quebec — Full-line producer and importer Shermag said it will lay off 90 employees at its factory in Disraeli, Quebec, effective Oct. 9.
The company said the action was due to excess capacity as it shifts manufacturing of its bedroom and glider rocker lines to China, while refocusing domestic production on made-to-order merchandise.
President and CEO Jeff Casselman said imports currently account for about 25% of Shermag's volume, and that should climb to 35% this year and edge towards 50% in about two years.
Over the past nine months, Shermag has closed two case goods factories, a sawmill and the upholstery plant in Saint-Leonard, Quebec, with total job losses of over 250.
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