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Velan announces the consolidation of its manufacturing operations

2019/01/11
Dear business partners,

Through recent announcements, we are taking measures aimed at improving our operational efficiency and optimizing our manufacturing footprint in North America. As part of our optimization and specialization efforts in North America, we will consolidate our 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 and avoiding impact on current orders in progress. The current production will be gradually integrated into our 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.

Recently, Velan reorganized into strategic business units, allowing us to significantly reinforce our market positioning, to better serve our customers and drive growth. This is in line with work over recent years, under the umbrella of our corporate strategy, Velocity 2020, to pursue additional efficiencies, decrease costs, upgrade systems, improve on time delivery and maintain our 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. 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.”

As we work towards improving our operational efficiency and leveraging our global presence, we ensure you that the impact on current business and orders will be minimal. We welcome all our business partners to contact us with any questions or concerns that may arise.
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© Velan Inc. All rights reserved.
IgnitionWeb High-Touch Communications