Velan Inc. Announces Next Steps in Its Velocity 2020 Transformation Plan
MONTREAL, Jan. 10, 2019 (GLOBE NEWSWIRE) — Velan Inc. (TSX:VLN) (“Velan” or the “Company”) announces today 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 & CEO of VELAN Inc., 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.”
Founded in Montreal in 1950, Velan Inc. (www.velan.com) is one of the world’s leading manufacturers of industrial valves, with sales of US$338 million in its last reported fiscal year. The Company employs over 1,800 people and has manufacturing plants in 9 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.
Safe harbour statement
This news release may include forward-looking statements, which generally contain words like “should”, “believe”, “anticipate”, “plan”, “may”, “will”, “expect”, “intend”, “continue” or “estimate” or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties, which are disclosed in the Company’s filings with the appropriate securities commissions. While these statements are based on management’s assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed, and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
For further information, please contact:
Yves Leduc, President & Chief Executive Officer
John D. Ball, Chief Financial Officer
Tel.: (514) 748-7743
Fax: (514) 748-8635