We believe this will ensure the long-term viability of our domestic operations and speed Ameriwood's profitability growth.
Martin Schwartz, President & CEO, Dorel

Dorel Industries is a leading provider of RTA (Ready to Assemble) furniture to the rent to own industry. Despite some improvement in business conditions, Dorel President & CEO, Martin Schwartz said today that the company would close its Dowagiac, Michigan manufacturing facility as of mid July.

"This will affect approximately 170 of the 215 member workforce," said Schwartz. "We believe this will ensure the long-term viability of our domestic operations and speed Ameriwood's profitability growth. RTA furniture is a business we know well and will maintain. We are confident that, despite a difficult environment, we will definitely prevail."

Schwartz added, "While we remain convinced that there will be sustained demand for domestically manufactured RTA furniture, we have concluded that with the improvements made to date, our manufacturing footprint exceeds anticipated market needs," .

Schwartz said the company's various operations are continuing to improve, offering modest growth potential this year and more in 2008. Addressing shareholders attending today's annual general meeting, Mr. Schwartz noted that several new high margin juvenile products will be introduced in the US later this year and into next year.

Acknowledging that it has been an uphill battle for the entire RTA furniture industry, Mr. Schwartz detailed the progress being made at Ameriwood's RTA factories. Board prices have stabilized, scrap is down, board yield is up, labor efficiencies have improved and inventories are better balanced to realistically meet customers' needs. Results from a re-oriented supply chain, focusing on both North America and China, have been encouraging with a new import program rapidly becoming a growing part of Ameriwood's business. With this concentrated effort, both the Cornwall, Ontario and Tiffin, Ohio facilities are operating at high efficiency levels and can accommodate still more business.