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Posted: Thu Jan 08, 2009 4:15 am Post subject: Dorel Juvenile Platform In Brazil |
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*** Dorel Juvenile Platform In Brazil ***
Montreal, Canada -- 01/08/2009
Dorel Industries Inc. (TSX: DII.B DII.A) today announced it is
establishing Companhia Dorel Brasil Produtos Infantis (Dorel Brazil),
a new operating division of the Company's Juvenile segment. "Brazil
holds tremendous promise and we are well positioned to benefit from
the excellent market opportunities that exist there. This is yet another
strategic move to further secure Dorel's dominance as a global leader
in the juvenile products industry," stated Dorel Juvenile Group President
Camillo Lisio.
Dorel has identified a local partner with solid experience in the juvenile
sector to act as President of the new venture. Rafael Anjos Camarano
is well respected in industry circles and has established relations in all
of Brazil's retail channels. His knowledge will serve the new company
well in identifying local consumer trends and preferences. In the past,
Mr. Camarano's firm has represented Safety 1st in the Brazilian market.
Dorel will be the majority shareholder of the new venture.
Mr. Lisio said that after carefully analyzing the potential market in
Brazil, despite current economic conditions and currency issues, it
was determined that there are still a number of compelling reasons
to support Dorel's foray into the country.
"Importantly, car seats became mandatory in Brazil in June 2008 and
demand has escalated. As the world's largest car seat manufacturer,
we will maximize our internal assets and will be able to quickly ramp
up the manufacture of car seats locally. Dorel already has the necessary
car seat moulds and thus we will save both time and significant costs.
As such, our total investment is under $4 million. There is room for
more contemporary designs in the market and Dorel has a proven
track record of providing a wide range of exciting products."
He also pointed out that competition in Brazil is fragmented, and the
country has a young population with a very high birth rate of 18.72
per 1000 population compared to the U.S. rate of 14.18 births per 1000
population. With over 196 million residents, Brazil is ranked 7th in world
population.
"Dorel has the global scope and the experience to maximize the
prospects in Brazil. We look forward to building this platform into
a very meaningful component of our Juvenile segment," said Dorel
President and CEO Martin Schwartz.
Dorel Brazil will be operational almost immediately with multiple
brands and products to meet all price points in all retail channels.
First year revenue is anticipated to be at least US$10 million and
it is expected that the business will grow significantly over the
next couple of years.
Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile
products and bicycle company. Established in 1962, Dorel creates
style and excitement in equal measure to safety, quality and value.
The Company's lifestyle leadership position is pronounced in both its
Juvenile and Bicycle categories with an array of trend-setting products.
Dorel's powerfully branded products include Safety 1st, Quinny,
Cosco, Maxi-Cosi and Bebe Confort in Juvenile, as well as Cannondale,
Schwinn, GT, Mongoose and SUGOI in Recreational/Leisure.
Dorel's Home Furnishings segment markets a wide assortment of
furniture products, both domestically produced and imported. Dorel
is a $2 billion company with 4600 employees, facilities in seventeen
countries, and sales worldwide. _________________ BMX News Reporter, An Array Of People
Reporting The BMX News & Information
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