Velan has announced that the company is taking measures aimed at improving its operational efficiency and optimizing its manufacturing footprint in North America. As part of the optimization and specialization efforts in North America, the company 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 and avoiding impact on current orders in progress. The current production will be gradually integrated into Velan’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.
Recently, Velan reorganized into strategic business units, allowing the company to significantly reinforce its market positioning, to better serve its customers and drive growth. This is in line with work over recent years, under the umbrella of its corporate strategy, Velocity 2020, to pursue additional efficiencies, decrease costs, upgrade systems, improve on time delivery and maintain 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. 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.”